Late Payment Interest Calculator
Estimate interest on an overdue invoice using common state penalty-interest benchmarks, since Australia has no single national B2B rate.
Total amount due
$5,000
Days overdue0
Interest accrued$0
Statutory rate applied10.0%
Charging interest on an overdue invoice in Australia
Unlike some countries, Australia has no single national statutory interest rate you're automatically entitled to charge on an overdue business-to-business invoice. What you can actually charge comes down primarily to your contract's own payment terms — if there's no interest clause, recovering interest generally means pursuing the debt through court and relying on that state's own pre-judgment interest rate.
What this calculator covers
- A simple interest calculation on an overdue invoice amount
- The Victorian Penalty Interest Rate of 10% per annum as a commonly cited benchmark
- A reminder that other states set their own court pre-judgment rates, often tied to the RBA cash rate
- A note on the ATO's separate General Interest Charge, which doesn't apply between businesses
