Late payment interest calculator.

A contractual penalty is only owed where it was agreed: in the contract or on the invoice itself. The common Latvian figure is 0.05% per day of delay, because that is what most contract templates carry. Section 1716 of the Civil Law caps a penalty for late payment at 10% of the principal in total, so at 0.05% a day the cap is reached on day 200. The calculator still shows what the rate would produce, but its total counts only what can be claimed.

Multiply the principal by 0.0005 and by the number of days overdue. On a 1000 euro invoice 30 days late: 1000 × 0.0005 × 30 = 15 euro, so 1015 in total. This is the same formula erekini.eu applies when it bills late interest automatically.

A contractual penalty is owed only where it was agreed, at whatever rate the contract sets. Statutory interest is owed without a separate agreement (Civil Law section 1765): between businesses it is the European Central Bank reference rate plus 8 percentage points, 10.40% a year from 1 July 2026, and with a consumer debtor 6% a year. A penalty of 0.05% a day is 18.25% a year. The two are not claimed in full side by side: a penalty for late payment can be claimed only insofar as it exceeds the default interest claimed (section 1722). This calculator shows both so the difference is visible.

From the day after the due date shown on the invoice. The due date itself is not yet a delay. This calculator counts whole days and compares dates at UTC midnight so a clock time cannot add or drop a day.

A penalty for late payment is generally not consideration for a good or a service, so it is normally outside the scope of VAT. For a specific case, particularly a large amount or a cross-border transaction, check VID guidance or ask your accountant.

Yes. On the erekini.eu Business plan late interest is calculated and issued for you at the rate and delay you set, with a full log of every action. Reminders go to the customer in steps before that, and the pre-court warning is approved by you rather than by the system.