Late Rent Interest Calculator

Work out the most interest you can legally charge a tenant in England for late rent. Enter the rent due, the due date and any payments, and the calculator applies the Tenant Fees Act cap of 3% above the Bank of England base rate, day by day.

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For tenancies and licences covered by the Tenant Fees Act 2019 in England. You can only charge interest on late rent if the tenancy agreement requires it. Use one rent instalment per calculation.

The full instalment that was due. Add any part payments below.
Check the current rate on the Bank of England website.
The law caps it at 3% above base rate.

Payments received

Add every payment towards this instalment, including the one that cleared it. Leave empty if nothing has been paid.

Base rate changes (optional)

If the base rate changed while the rent was late, add the date of each change and the new rate.

Used while the rent isn’t paid in full. Defaults to today.
Estimate only. Under the Tenant Fees Act 2019, a landlord or agent in England can charge interest on late rent only if the tenancy agreement requires it and the rent is not paid in full before the end of the 14 days starting with the due date. Interest is capped at 3% a year above the Bank of England base rate, on the rent still unpaid at the end of each day after the due date. A flat late-payment fee is not allowed. This calculator divides by 365, or 366 for days in a leap year, and rounds down to the penny; the Act doesn't set a day count. Not legal advice.

How to work out interest on late rent

Check the 14-day rule first. If interest is allowed, apply the annual rate to the rent still unpaid at the end of each day after the due date.

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Late rent interest formula: unpaid rent times base rate plus 3%, divided by 365, times the days after the due date that end with rent unpaid. Example: £1,200 due 1 October and paid 31 October is 29 days at 6.75%, or £6.43.
Step 1

Check the 14-day rule

If the tenant paid in full within the 14 days starting with the due date, stop: you can't charge interest. Check that your tenancy agreement allows it.

Step 2

Find the annual rate

Add 3% to the Bank of England base rate. If your agreement sets a lower rate, use that instead. If the base rate changed, use the rate in force on each day.

Step 3

Apply it day by day

For each day after the due date that ends with rent unpaid, multiply what's still owed by the rate and divide by 365 (366 in a leap year). Don't count the day the rent is paid in full. Add the days up and round down to the penny.

Worked example

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Rent of £1,200 is due on 1 October and paid in full on 31 October. The base rate is 3.75%.

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The 14 days from 1 October end on 14 October and the rent was still unpaid, so interest is allowed.

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Days = 2 to 30 October = 29 (31 October ends with the rent paid, so it doesn't count)

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Rate = 3.75% + 3% = 6.75%

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Interest = £1,200 × 6.75% ÷ 365 × 29 days = £6.4356, rounded down to £6.43

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How late rent interest works in England

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Nothing for 14 days, then backdated

You can only charge interest if the rent is still unpaid at the end of the 14 days starting with the due date. Once it is, the Act lets you charge for each day after the due date that ends with rent unpaid, not just from day 14.

On £1,200 due on 1 October and paid in full on 31 October, that's 29 days (2 to 30 October): up to £6.43 at 6.75%.

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Only what your agreement allows

Interest has to be written into the tenancy agreement, and only on the amount still unpaid. Anything above 3% over base rate is a banned payment.

A flat late-payment fee on top isn't allowed under the Tenant Fees Act 2019.

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Why use our late rent interest calculator?

  • Applies the Tenant Fees Act cap of 3% above base rate
  • Checks the 14-day rule and tells you if interest can't be charged yet
  • Handles part payments and base rate changes, day by day
  • Caps your agreement's rate if it's above the legal maximum
  • Free, fast and no sign-up

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FAQs

Can I charge interest on late rent?

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Yes, in England, if your tenancy agreement says so and the rent is still unpaid at the end of the 14 days starting with the due date.

The interest is capped at 3% a year above the Bank of England base rate, and you can only charge it on the amount still owed.

How do you calculate interest on late rent?

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For each day after the due date that ends with rent unpaid, multiply what's still owed by the annual rate and divide by 365 (366 in a leap year). Add the days up and round down to the penny.

At a 3.75% base rate the cap is 6.75%, so £1,200 due on 1 October and paid in full on 31 October carries up to £6.43 for 29 days.

When does interest on late rent start?

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From the day after the due date, but only once the rent has been late for 14 days.

If the tenant pays in full within the 14 days starting with the due date, you can't charge any interest.

What if the tenant pays part of it, or the base rate changes?

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Add each payment and each base rate change to the calculator. It charges interest each day on what's still owed at the end of that day, at the base rate in force that day.

GOV.UK guidance says to recalculate for both. Use one calculation for each rent instalment.

Can I charge a late payment fee instead?

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No. In England, interest within the cap is the only charge the Tenant Fees Act allows for late rent.

Wales and Scotland have their own rules.