Whether you are a creditor who wishes to calculate what they are
owed, a debtor what they owe or an insolvency practitioner what to
allow on a proof, we hope that our simple interest calculator will
prove a helpful tool to you. Please click on the link to view
the instructions to use the simple interest
calculator and the explanatory note.
how to use the simple interest calculator
To use the simple interest calculator you will need to
input your 'interest rate (per annum)' manually. So, for
example, if you are applying the current judgment rate of interest
to a judgment debt, you will have to check in advance what this
rate is according to the legislation in force at the date of
judgment or the statutory implied rate under the Late Payment of
Commercial Debts (interest) Act.
For more complex debts with variable rates over time or compound
interest, you can still use the simple interest calculator, but you
will need to input and print out separate calculations following
any date when the rate changes or interest compounds, adjusting the
next period's interest rate (per annum)' or principal sum
accordingly.
explanatory note
Our simple interest calculator is designed to assist only with
very basic calculations of interest on any sum (the
'principal sum'), provided that it is a sum upon
which interest accrues daily, and that you know the applicable
annual rate of interest in advance. Often the principal sum
will be something as simple as the gross amount of an invoice, an
acknowledged or agreed debt, or just a notional figure for damages
where there has been, or may have been, a breach of contract.
The most useful feature of the calculator is that it will
instantly calculate for you the number of days between any two
dates, which you simply select from the attached
mini-calendar. You might, for example, input a date 30 days
from the date of your invoice, and then the date of your letter or
other form of demand; in the calculator, these are known as the
'interest from date' and 'interest to
date' . It will also tell you the daily rate for
continuing interest.
