Interest on Late Payments: How Much Can You Claim?
You wait, send reminders, maybe even call. Still nothing. Time goes by, and the unpaid invoice or loan sits there, quietly losing value. But here’s something many creditors don’t realize: even a delay can cost the debtor. You’re entitled to late payment interest – and if you don’t claim it, you’re essentially giving away money. I’ve had clients who didn’t claim anything for years… and it cost them thousands. Don’t be one of them.
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The issue of interest on unpaid debts often raises questions like “how much interest can I charge,” “statutory interest rate,” or “interest on unpaid invoice.” Many people look for templates and calculators, but beware – mistakes in the amount or calculation can lead to court rejection. That’s why in this article I’ll explain the basic legal framework, including examples and frequent pitfalls.
What Is Statutory Interest?
If a debtor is late with payment, you have the right to charge statutory interest. You don’t need a contract for this – it’s regulated by law.
Currently (2025), the annual interest rate is 11.75%.
It’s based on the repo rate of the Czech National Bank (CNB) plus 8 percentage points.
📌 Calculation formula:
CNB repo rate + 8%
(Example: 3.75% + 8% = 11.75% annually)
This rate changes whenever the CNB updates the repo rate – which has been quite frequent in recent years.
How to Calculate Interest – Example
Let’s say a client owes you 50,000 CZK and is 3 months late.
Interest rate = 11.75% annually
Period = 90 days
📌 Calculation:
50,000 × 0.1175 × (90/365) ≈ 1,450 CZK
That’s how much you could legally claim, even without a contract.
Can You Contractually Agree on Higher Interest?
Yes – and many businesses do. If your contract states interest at, say, 0.1% per day, it takes priority over statutory interest.
But be careful: If the interest is disproportionately high, the debtor could challenge it in court as usury or contrary to good morals.
What is still acceptable?
That depends – courts usually accept around 15–20% annually, but higher rates must be well justified.
Frequent Mistakes by Creditors
No demand for interest at all – out of fear or ignorance.
Incorrect calculation – using outdated or incorrect rates.
Too high contractual interest – risking rejection in court.
No mention of interest in the lawsuit – and you lose the right.
Lawyer’s Tip
If you’re unsure whether to claim interest or how to calculate it, don’t guess. Incorrectly calculated interest may not only get rejected by the court but could even weaken your credibility. In my experience, properly calculated and claimed interest significantly improves negotiation leverage – and often leads to faster settlement.
Need help calculating or claiming interest?
Don’t wait for the debtor to pay on their own. Every day of delay costs you money – and without the correct interest calculation, you could lose more than you think. I can help you draft the demand letter, interest calculation, or lawsuit so you get everything you’re entitled to. Just reach out – the first consultation might be faster than waiting for the money.
Contact a legal professional – I specialize in debt collections.
Learn more here.
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- Naposledy aktualizováno: 15/07/2025
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Interest on Late Payments: How Much Can You Claim?
Print You wait, send reminders, maybe even call. Still nothing. Time goes by, and the unpaid invoice or loan sits there, quietly losing value. But