How is a late payment charge calculated?
Formula using overdue days
30-day month: principal × monthly rate / 100 / 30 × days. 365-day year: principal × monthly rate / 100 × 12 / 365 × days.
Calculation using dates
Use calendar days between the due and payment dates. Same-day or early payment gives zero overdue days.
What should the agreement specify for a late payment charge?
Specify the due date, the trigger for a charge, its rate and whether the rate is monthly or annual. Clarify the balance used, the 30-day or 365-day convention and VAT treatment. This calculator does not create an agreement or a collection right.
Late charge invoices and VAT
Use the VAT rate applicable to the original transaction for the additional charge. The calculator adds VAT only to the new charge and does not recalculate VAT on the existing balance.
Late payment charges versus statutory interest
This calculator uses your contractual rate for a late payment scenario. It does not choose a statutory interest rate or establish a right to collect. Use the agreed due date, rate and day convention.
Supplier payment terms and restaurant cash flow
A restaurant delaying a TRY 25,000 supplier balance by 45 days at 3% monthly on a 30-day basis incurs TRY 1,125 in charges. Assuming 10% VAT is applicable to the original transaction, the additional amount is TRY 1,237.50 and total payment TRY 26,237.50. Budget this against expected collection dates.
Estimate the cost of a supplier delay or a corporate catering balance. Compare with a prompt-payment discount.