Late payment interest calculator: S.I. 580/2012 interest and compensation
A business customer is paying late? Work out the late payment interest and the fixed compensation you are entitled to under the European Communities (Late Payment in Commercial Transactions) Regulations 2012. Free, no sign-up; the calculation runs in your browser.
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How the calculation works
S.I. No. 580 of 2012 applies to transactions between businesses and with public authorities, for contracts made from 16 March 2013. It does not apply to consumers.
Interest runs from the day after the due date until payment, without any reminder. The rate is set for each half-year: the ECB main refinancing rate of the last operation before 1 January (or 1 July), plus 8 percentage points (Regulation 5). The Department of Enterprise, Tourism and Employment publishes it: 10.15% for the first half of 2026 and 10.40% from 1 July 2026.
When the delay spans several half-years, the calculator splits it and applies each half-year's rate. For each period: amount owed × rate × days ÷ 365 (simple interest).
Fixed compensation for recovery costs is due 'without the necessity of a reminder' (Regulation 9): €40 for a debt under €1,000, €70 from €1,000 to under €10,000, €100 from €10,000. Reasonable recovery costs above that amount, such as a solicitor's or a collection agency's fees, can also be claimed.
- Agreed terms longer than 60 days are valid only if expressly agreed and not grossly unfair.
- Consumers: the Regulations do not apply, so there is no late payment interest or fixed compensation under them.
- First half of 2027: until the Department confirms it, the calculator uses the ECB rate of 2.65% (since 16 September 2026) + 8 points, flagged as not confirmed.
Official sources
- Irish Statute Book — S.I. No. 580 of 2012, Late Payment in Commercial Transactions Regulations
- Department of Enterprise, Tourism and Employment — Late payment interest rate
- Department of Enterprise, Tourism and Employment — Late payment in commercial transactions
- European Central Bank — Key ECB interest rates
Rules checked on 20 October 2026. Free tool for information only: it is not legal or tax advice. The rules are checked against the official sources listed on this page; check your own situation before acting.
Frequently asked questions
What is the late payment interest rate in Ireland?
10.40% a year from 1 July 2026 (ECB main refinancing rate of 2.40% + 8 points), and 10.15% for the first half of 2026. The rate changes every half-year and is published by the Department of Enterprise, Tourism and Employment.
Do I need to send a reminder before claiming interest?
No. Interest runs from the day after the due date, and the fixed compensation is due without a reminder (Regulation 9).
How much is the fixed compensation?
€40 for a debt under €1,000, €70 from €1,000 to under €10,000, and €100 from €10,000, once per late invoice. Reasonable recovery costs above that can also be claimed.
Can I charge late payment interest to a consumer?
Not under S.I. 580/2012, which covers only businesses and public authorities. Consumer rules are different and are not covered by this calculator.
How long do I have to claim an unpaid invoice?
Six years for actions founded on simple contract (Statute of Limitations 1957, section 11).
Further reading
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