Late payment interest calculator
From 1 July to 31 December 2026, statutory late payment interest on an unpaid invoice for goods or services in Latvia is 10.40% a year: the ECB main refinancing rate of 2.40% plus 8 percentage points (Civil Law, section 1765, parts 2 and 3). A consumer debt, or a debt with no agreed rate, carries 6% a year, while in a business transaction the creditor can also claim €40 in recovery costs without sending a reminder (section 1668.9).
Calculator
What you can claim
| Period | Days | Annual rate | Interest |
|---|---|---|---|
| 28/07/2026 – 25/09/2026 | 60 | 10.4% | 17.10 € |
Statutory late payment interest rate by half-year
For business debts for goods or services: the ECB main refinancing rate on the first day of the half-year plus 8 percentage points (Civil Law, section 1765, parts 2 and 3).
| Half-year | ECB rate | Statutory rate |
|---|---|---|
| Second half of 2026 | 2.4% | 10.4% |
| First half of 2026 | 2.15% | 10.15% |
| Second half of 2025 | 2.15% | 10.15% |
| First half of 2025 | 3.15% | 11.15% |
| Second half of 2024 | 4.25% | 12.25% |
| First half of 2024 | 4.5% | 12.5% |
| Second half of 2023 | 4% | 12% |
| First half of 2023 | 2.5% | 10.5% |
| Second half of 2022 | 0% | 8% |
| First half of 2022 | 0% | 8% |
| Second half of 2021 | 0% | 8% |
| First half of 2021 | 0% | 8% |
| Second half of 2020 | 0% | 8% |
| First half of 2020 | 0% | 8% |
| Second half of 2019 | 0% | 8% |
| First half of 2019 | 0% | 8% |
| Second half of 2018 | 0% | 8% |
| First half of 2018 | 0% | 8% |
| Second half of 2017 | 0% | 8% |
| First half of 2017 | 0% | 8% |
| Second half of 2016 | 0% | 8% |
What the calculator assumes
- Interest runs from the day after the due date up to and including the day of payment (Civil Law, section 1668.3), as simple interest on the principal only (section 1765, part 4).
- A year has 365 days. The law sets no day count; 365 is the usual practice.
- For a business debt each day takes the rate of the half-year it falls in, because the reference rate applies for six months from the first day of the half-year.
- Interest stops growing once the unpaid interest equals the principal (section 1763), and a contractual penalty stays within 10% of the principal (section 1716, part 3) when you mark the rate as a penalty.
- Part payments are not modelled. If the debt was paid in parts, work out each stretch on the amount still unpaid at the time.
Example: a €1,000 invoice paid 91 days late
A company issued a €1,000 invoice due on 31 May 2026, and its customer, another company, paid on 30 August. The delay crosses the half-year boundary, so June takes the first-half rate and July and August the second-half rate.
| Period | Days | Annual rate | Interest |
|---|---|---|---|
| 1 Jun 2026 to 30 Jun 2026 | 30 | 10.15% | €8.34 |
| 1 Jul 2026 to 30 Aug 2026 | 61 | 10.40% | €17.38 |
| Late payment interest | 91 | €25.72 | |
| Recovery compensation | €40.00 | ||
| Claimable on top of the principal | €65.72 |
The formula for each period: amount × annual rate × days ÷ 365. For June: 1,000 × 10.15% × 30 ÷ 365 = €8.34.
Which rate applies
The type of debt sets the rate, not its size. The Civil Law separates a debt for goods or services, a debt involving a consumer, and every other debt.
| Situation | Rate | Legal basis |
|---|---|---|
| A business or public buyer has not paid an invoice for goods or services | ECB rate + 8 pp (10.40% in the second half of 2026) | Civil Law, section 1765, parts 2 and 3 |
| A consumer has not paid an invoice | 6% a year | Civil Law, section 1765, part 2 |
| Any other money debt with no agreed rate, such as a loan between private persons | 6% a year | Civil Law, section 1765, part 1 |
| The contract sets its own late payment rate | The agreed rate | Civil Law, section 1765, part 1; section 1764 |
| A contractual penalty for late payment | As agreed, at most 10% of the principal in total | Civil Law, section 1716, part 3 |
Disproportionate interest that does not match fair business practice is unlawful (section 1764), and a clause excluding late payment interest in a business contract is grossly unfair (section 1668.10).
How the half-year rate is set
The reference rate is the rate the European Central Bank applied in its last main refinancing operation before 1 January or 1 July. It then applies for the next six months, even if the ECB changes its rate in between (Civil Law, section 1765, part 3).
That is why the rate for the second half of 2026 is 10.40%, even though the ECB raised its rate to 2.65% on 16 September 2026. The new rate reaches business debts only on 1 January 2027. Every half-year rate since 2016 is in the table above this section.
The €40 recovery compensation
When an invoice for goods, a purchase or a service is paid late, the debtor owes the creditor €40 in debt recovery costs without any reminder (Civil Law, section 1668.9). Paying it does not release the debtor from compensating the creditor’s other losses, legal costs included.
- It cannot be claimed from a consumer or from a natural person who is not in business (section 1668.11).
- No reminder is needed: the delay alone is enough.
- The amount is fixed and does not depend on the size of the debt.
Payment terms between businesses
- With no agreed term, the debtor is in default automatically after 30 days from receiving the invoice, the goods or the service (section 1668.2).
- Businesses can agree a payment term of up to 60 days. A longer one is valid only if expressly agreed and not grossly unfair to the creditor (section 1668.6).
- When the debtor is a public buyer, the term is 30 days, or up to 60 days where justified (section 1668.7).
- Late payment interest can be claimed without a reminder from the day after the due date (sections 1668.3 and 1668.4).
Late payment interest is not a contractual penalty
Late payment interest compensates for money not received on time, and it is owed even when the contract says nothing about it (Civil Law, section 1759). A contractual penalty (līgumsods) is a sanction agreed in the contract; for late performance it may grow over time, but in total by no more than 10% of the principal (section 1716, part 3). If the contract says "0.1% for each day of delay", pick the contract rate in the calculator and tick whether it is a penalty.
Frequently asked questions
- What is the statutory late payment interest rate in Latvia in 2026?
- For business debts for goods or services it is 10.40% a year in the second half of 2026 (ECB rate 2.40% + 8 percentage points). In the first half of 2026 it was 10.15%. Consumer debts and debts with no agreed rate carry 6% a year.
- How do I calculate late payment interest?
- Multiply the unpaid amount by the annual rate and by the number of days late, then divide by 365. If the delay crosses 1 January or 1 July, work out each half-year of a business debt separately at its own rate and add the results.
- From which day does late payment interest run?
- From the day after the payment date set in the contract. With no agreed date, a business debtor is in default 30 days after receiving the invoice (Civil Law, sections 1668.2 and 1668.3).
- Can I claim the €40 compensation from a private person?
- No. The €40 recovery cost does not apply when the debtor is a consumer or a natural person who is not in business (Civil Law, section 1668.11).
- Can a contractual penalty be 0.5% a day?
- A penalty for late performance may grow, for example as a percentage per day, but in total by no more than 10% of the principal or main obligation (Civil Law, section 1716, part 3). It must also be proportionate and in line with fair business practice (section 1717).
- What happens if the ECB changes its rate mid-half-year?
- Nothing until the next 1 January or 1 July. The reference rate in force on the first day of the half-year applies for all six months (Civil Law, section 1765, part 3).
- Can late payment interest exceed the debt itself?
- Section 1763 of the Civil Law says interest stops growing once the unpaid interest reaches the size of the principal, and when insolvency proceedings are opened over the debtor’s property. The calculator stops interest at the principal.
Sources
- Civil Law, sections 1668.1 to 1668.11, 1716, 1759, 1763 to 1765 (likumi.lv, Latvian)
- Civil Law, English translation (likumi.lv)
- ECB key interest rates (ecb.europa.eu)
- Official Journal: ECB rate on 1 July 2026, C/2026/3581 (eur-lex.europa.eu)
- Directive 2011/7/EU on combating late payment in commercial transactions (eur-lex.europa.eu)
- e-Justice: interest rates in Latvia (e-justice.europa.eu)
Catch a late invoice before it becomes a debt
Fakts shows which invoices are overdue and by how many days, and sends your customer a reminder with the invoice PDF attached. Free.