Free tool · Money

Late payment interest calculator

Enter the amount, the date it was due and the date it was paid (or today). Choose the prescribed rate, prime plus a margin, or your contract's rate, and see the interest owed.

The prescribed rate of interest is 10.50% a year, in force from Wed 1 Jul 2026. It applies where the contract sets no rate.

Enter the amount, the dates and the rate.

Source: Prescribed Rate of Interest Act 55 of 1975 (repo rate plus 3.5 points, with a lag); prime as published by the banks after the SARB decision of 23 September 2026. Checked 2026-10-24.

How the interest is worked out

Simple interest on the unpaid amount at the yearly rate, divided over 365 days, from the day after the due date up to and including the day of payment.

The in duplum rule stops interest once the unpaid interest equals the amount owed; the calculator applies that cap and says when it does.

Which rate

Use the rate in your contract data first. Where the contract says nothing, the prescribed rate of interest under the Prescribed Rate of Interest Act applies; it follows the repo rate with a lag and changes during the year, so the rate shown is the one in force today.

Worked example

A certificate of R1 000 000 was due on 1 October 2026 and paid on 31 October. That is 30 days late. At 10.5% a year the interest is R287.67 a day, R8 630.14 in total.

Questions about the late payment interest calculator

From which day does interest run?

From the day after payment was due, up to and including the day it is paid.

What is the prescribed rate of interest?

The rate set under the Prescribed Rate of Interest Act, used for debts where no rate was agreed. It is the repo rate plus 3.5 percentage points, and it changes a little after each repo decision.

Is the interest compounded?

No. Construction contracts and the prescribed rate use simple interest unless the contract says otherwise.

Can interest be more than the amount owed?

Not while it is unpaid: the in duplum rule stops it once it equals the capital. The calculator caps it there.

Does VAT go on the interest?

Interest on late payment is generally not subject to VAT, but check with your accountant for your situation.

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