Late Payment Interest Calculator (India)
Work out what an overdue invoice is actually worth — MSMED Act compound interest at 3× the RBI bank rate, or your contract rate.
Free — no signup, runs entirely in your browser.
MSMED interest is 3× the RBI bank rate, compounded monthly. The rate is editable because it changes with RBI policy — verify the current rate.
Amount recoverable
Total due
₹1,02,412
| Invoice amount | ₹1,00,000 |
| Days overdue | 45 |
| Interest @ 19.50% p.a. (monthly compounding) | ₹2,412 |
| Total | ₹1,02,412 |
≈ ₹54 of interest per day at the selected rate. Estimate only — verify the current RBI bank rate and your contract terms. Not legal advice.
About the Late Payment Interest Calculator (India)
Calculate interest on overdue invoices for Indian freelancers — MSMED Act 3× RBI bank rate (compounded monthly) or a custom contract rate.
What you can do with it
- MSMED Act 3× RBI bank rate
- Monthly compounding
- Custom contract rate
- Days overdue & total due
Frequently asked questions
What interest can I claim on a late payment in India?
If you are a micro or small enterprise under the MSMED Act 2006, Section 16 gives you compound interest at three times the RBI bank rate, compounded monthly, when payment is delayed beyond 45 days (15 days if there is no written agreement). For other invoices, the contract rate applies; if the contract is silent, the Interest Act 1978 allows the current rate of interest.
How is MSMED interest calculated?
Interest = principal × ((1 + (3 × bank rate)/12)^months − 1), using monthly rests. Enter the current RBI bank rate — the calculator makes it editable because it changes with RBI policy.
Is 18% a valid late-payment rate?
18% per annum is a common contractual rate in Indian invoices and is often accepted by courts, but the enforceable rate depends on your contract and the facts. The calculator lets you enter any rate.
Related guides
A calm, escalating system for getting paid on time: prevent it in the contract, invoice so it cannot be ignored, and follow up firmly enough to collect without torching the relationship.
Invoice Best Practices That Get You Paid Faster