Late Payment Penalty Calculator
A business client is paying you late? Calculate the late-payment penalties and the fixed indemnity you can claim from them, then generate your reminder letter in one click.
Result
How it is calculated
- Between businesses, late-payment penalties are due from the day after the due date, with no reminder needed (Article L441-10 of the French Commercial Code).
- The rate is the one set in your terms and conditions or on the invoice. It cannot be lower than 3 times the legal interest rate. If no rate is set, it is the ECB key rate plus 10 percentage points.
- Formula: unpaid amount × annual rate × number of days late ÷ 365.
- On top of this comes a fixed indemnity of €40 for recovery costs, per invoice paid late.
- With a private client, these rules do not apply: only interest at the legal rate can be claimed, usually after a formal notice.
Calculation aid. Check the rate set in your terms and conditions and the current rates on the Banque de France website.
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