Methodology
How the estimate is calculated
Interest model
The estimate uses simple interest: invoice amount × annual rate × overdue days ÷ 365.
UK mode assumptions
This release uses 11.75% simple annual interest, derived from 8% plus a 3.75% Bank of England base rate assumption. Fixed compensation follows bands of £40, £70 and £100 based on invoice size.
EU generic assumptions
This release uses an informational 8.00% annual rate and EUR 40 flat compensation baseline. It is not country-specific.
Late start logic
If a due date is provided, that date is used as the late-payment start. If no fixed term is agreed, the tool uses a simplified 30-day assumption from the later of the invoice date and optional delivery or completion date.
Limitations
The tool does not verify contract clauses, disputes, VAT treatment, public-sector timing rules, country-specific enforcement details or court outcomes.