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Late Payment Interest in European Union (Directive 2011/7/EU) (2026)

at least 10.40% per year (euro area) — ECB main refinancing rate (2.40% as of 1 July 2026) plus at least 8 percentage points — member states may set higher margins. On a €5,000 invoice 60 days overdue, the money already owed to you looks like this:

Total owed on a €5,000 invoice · 60 days late

€5,125.48

Growing €1.42 every day it stays unpaid

principal
€5,000
interest
€85.48
fixed fee
€40

Rate verified 2026-07-06 · Source: European Commission — Late payment · Methodology

Calculate your invoice

Rate prefilled from the EU default (at least 10.40% per year (euro area)) — override it if your contract sets its own.

€

60 days overdue

%

EU default: at least 10.40% per year (euro area)

Total now owed to you · EU

€5,125.48

€5,000 principal · 60 days overdue at 10.4%

interest accrued
€85.48
growing daily by
€1.42
fixed compensation
€40

Simple interest: amount × (10.4% ÷ 365) × 60 days + fixed compensation fee. Information, not legal advice — contract terms can override statutory defaults.

The rule in plain English

Across the EU, the Late Payment Directive guarantees creditors in business-to-business transactions statutory interest of at least the reference rate plus 8 percentage points, plus a minimum €40 fixed compensation per invoice.

In euro-area countries the reference rate is the ECB main refinancing rate (semi-annual snapshots on 1 January and 1 July). Non-euro member states use their own central bank rate.

Each member state implements the directive in national law, and some are more generous — check the national rules of the debtor country. This page describes the directive floor, not any single country’s exact implementation.

Payment terms in B2B contracts are capped at 60 days unless expressly agreed and not grossly unfair; public authorities must generally pay within 30 days.

Legal basis: EU Late Payment Directive 2011/7/EU.

Worked example

invoice = €5,000, 60 days overdue, rate = 10.40%

daily interest = €5,000 × (10.40% ÷ 365) = €1.42

interest = €1.42 × 60 days = €85.48

fixed compensation = €40

total owed = €5,125.48

What to include in your demand letter

A short, factual letter recovers more invoices than a heated one. Checklist (general guidance, not legal advice):

  • Invoice number, date, original due date, and the exact principal outstanding.
  • The interest calculation shown line by line — principal, rate (at least 10.40% per year (euro area)), days overdue, daily amount — so there is nothing to dispute.
  • The fixed compensation you are claiming under EU Late Payment Directive 2011/7/EU, with the band it falls into.
  • A single clear deadline (7 or 14 days is customary) and the payment details — remove every excuse for delay.
  • What happens next if unpaid: a letter before action, small claims / court filing, or referral to collections — stated plainly, without threats you don’t intend to keep.
  • A note that interest continues to accrue daily until payment — quote the per-day figure from the calculator above.

FAQ

What interest can I charge on a late invoice in the EU?
ECB main refinancing rate (2.40% as of 1 July 2026) plus at least 8 percentage points — member states may set higher margins. On a €5,000 invoice 60 days overdue, that is about €85.48 in interest plus a fixed €40 compensation fee. (EU Late Payment Directive 2011/7/EU; verified 2026-07-06.)
Do I need a clause in my contract to charge this?
No — the statutory right applies automatically to business-to-business transactions. If your contract sets its own late-payment remedy, that applies instead, provided it is a substantial remedy rather than a token one.
How is late payment interest calculated?
Simple interest on a daily basis: invoice amount × (annual rate ÷ 365) × days overdue, plus the fixed compensation fee per invoice. Interest normally runs from the day after the due date. The calculator above shows the formula with your own numbers.
Does the EU rate change?
Euro-area reference rate resets each 1 January and 1 July from the ECB main refinancing rate (2.40% since 17 June 2026).
Can I really send an invoice for the interest?
Yes — the standard practice is a short statement or updated invoice showing the principal, the daily interest accrued to date, the fixed compensation fee, and the legal basis (EU Late Payment Directive 2011/7/EU). Many creditors find the demand itself prompts payment. This site provides information, not legal advice; for significant sums, confirm your position with a professional before escalating.

This page is general information about European Union (Directive 2011/7/EU), verified 2026-07-06 against European Commission — Late payment. It is not legal advice, and statutory rules have exceptions and transition rules that a short summary cannot capture. Contract terms often override statutory defaults. For significant or disputed sums, consult a qualified professional in your jurisdiction.

Other jurisdictions

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