# Late payment interest calculator

> Late payment interest = invoice amount × annual rate × days overdue ÷ 365. A AED 50,000 invoice paid 75 days late at 9% a year carries about AED 925 of interest. Interest can only be charged if your contract or terms of business provide for it.

Interactive calculator: https://www.countify.ae/tools/invoice-late-interest-calculator · Updated 2026-10-14 · Countify UAE

## Interest on a AED 50,000 invoice at 9%

Simple interest on the overdue amount.

| Days overdue | Interest due | Amount to claim |
| --- | --- | --- |
| 30 | AED 369.86 | AED 50,369.86 |
| 90 | AED 1,109.59 | AED 51,109.59 |
| 180 | AED 2,219.18 | AED 52,219.18 |

Chasing early is cheaper than litigation: put interest terms on every invoice.

## Getting paid faster

Put payment terms and late interest on every invoice and contract, chase on day one, and stop work for persistent late payers. If an invoice stays unpaid for 6 months and you write it off, you can reclaim the VAT with [bad debt relief](https://www.countify.ae/tools/vat-bad-debt-relief).

## Frequently asked questions

### Is VAT charged on late payment interest?

No. Late payment interest is generally outside the scope of UAE VAT.