Late Payment & Bad Debt Calculator
See the real commercial cost of an overdue balance
Late payment affects more than the bank balance. It ties up working capital, consumes credit-control time and can force your business to generate significantly more sales to replace a write-off.
Compare the turnover needed to replace the loss, potential statutory interest and the estimated cost of professional recovery before deciding what to do next.
Enter the total overdue account balance and the due date of the oldest invoice. The figures update automatically.
Turnover needed to replace the loss
Estimated Rezolva collection commission
Rezolva Connect adds late-payment interest and recovery costs at placement. Recovered collection costs are applied against this commission.
Create a free account. No collection commission is charged if the amicable recovery instruction does not produce a recovery, subject to the agreed terms.
Understanding the estimate
Three figures, three different commercial questions
Potential late-payment interest
For some qualifying business-to-business debts, statutory interest may be available at 8% above the Bank of England base rate. A different contractual remedy or the circumstances of the transaction can change the position.
Turnover needed to replace a loss
If a debt is written off, the turnover needed to replace it depends on your profit margin. This comparison shows why waiting can cost substantially more than taking proportionate recovery action.
Estimated recovery commission
The commission estimate compares the likely cost of successful recovery with the wider cost of losing the balance. International and third-party costs can vary and should be agreed before they are incurred.
What this late-payment calculator helps you compare
The calculator brings three commercial questions together. Each figure answers something different, and none should be treated as a guaranteed recovery or automatic legal entitlement.
Potential interest
Estimate the interest that may have accrued on a qualifying late commercial payment using the current Bank of England base rate plus 8%.
Cost of writing off the debt
See the additional turnover the business would need to generate to replace the loss at the selected profit margin.
Cost of professional recovery
Compare the loss with Rezolva's standard 12% UK or 15% international collection commission estimate.
Enter the total balance and the oldest invoice due date
A commercial debt often consists of several invoices rather than one isolated invoice. Use the full outstanding account balance in the calculator and enter the due date of the oldest unpaid invoice for the age comparison.
For an actual placement, provide the full statement, invoice references, payments and credits. Interest should ultimately be assessed against the relevant invoice dates and the applicable contractual or statutory basis rather than relying on one simplified estimate.
How recovered principal, interest and costs are allocated
The calculator shows the standard commission before any recovery costs collected from the debtor are applied.
Principal
The original overdue commercial balance is returned to the client when it is recovered.
Interest
Any late-payment interest successfully recovered is also returned to the client.
Recovery costs
Recovered collection costs are applied against Rezolva's commission. When they cover it in full, the client receives the core recovery service at £0 net cost.
Questions about commercial interest and bad-debt estimates
What interest rate does the calculator use?
The illustrative statutory calculation uses the current Bank of England base rate plus 8%. The rate can change, and a different contractual remedy may apply instead.
Can statutory interest be charged on every overdue invoice?
No. The statutory regime applies to qualifying commercial transactions. The contract, identity of the parties, transaction and any alternative contractual remedy can affect the position.
Which date should be used when several invoices are overdue?
Use the oldest unpaid invoice due date for this high-level account estimate. A detailed calculation should consider the balance and due date of each relevant invoice, together with payments and credits.
What does turnover needed to replace the loss mean?
It estimates the sales revenue required to replace a bad-debt write-off at the selected profit margin. For example, a £10,000 loss at a 10% margin requires £100,000 of additional turnover to recreate the lost profit.
Who receives any interest recovered?
The client receives the recovered principal and any late-payment interest successfully recovered. Recovered collection costs are applied against Rezolva's commission.
Can recovered costs make the service free to the client?
Yes, in net terms, where the recovery costs collected from the debtor are sufficient to cover the agreed commission. If only part is recovered, that amount reduces the client's commission cost.
Does the result guarantee that interest or costs can be recovered?
No. The calculator is an initial commercial estimate, not legal or accounting advice. Recoverability depends on the account and no payment, interest, cost or outcome can be guaranteed.
Use the estimate to decide how to move the account forward
Send a final reminder
Create a professional final invoice-chasing email before referring the overdue account.
Generate the email →Assess the debt
Review the age, evidence, debtor engagement and dispute position before placement.
Assess recoverability →Understand the fee model
See how no collection, no commission recovery and recovered collection costs work.
View the fee model →Place the commercial debt with Rezolva
Create a free Rezolva Connect account and provide the full account balance, oldest due date and supporting documents. The instruction is reviewed before professional recovery contact begins.