Late payment penalties calculator

Automatically calculate late payment interest and the fixed recovery indemnity under the French Commercial Code.

Art. L441-10 2026 rate: 10.35% Free, no signup

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What the law says

Art. L441-10 of the French Commercial Code

The late payment penalty rate between businesses must be at least 3 times the ECB refinancing rate. In 2026, the ECB rate is 3.45%, resulting in a minimum penalty rate of 10.35% per year.

Art. D441-5: EUR 40 fixed recovery indemnity

In addition to late payment interest, every overdue invoice triggers a fixed recovery indemnity of EUR 40. If actual recovery costs exceed this amount, the creditor may claim additional compensation with supporting documents.

Penalties due automatically (de plein droit)

Late payment penalties are due automatically, without any reminder or formal notice. They accrue from the day after the payment date stated on the invoice. It is not possible to contractually waive these penalties in advance.

Frequently asked questions

How are late payment penalties calculated?

Late payment penalties are calculated according to Article L441-10 of the French Commercial Code. The minimum rate is 3 times the ECB refinancing rate (approximately 10.35% in 2026). The formula is: invoice amount (excl. VAT) x rate x number of days late / 365.

Is the EUR 40 fixed recovery fee always due?

Yes. Article D441-5 of the French Commercial Code provides for a fixed recovery indemnity of EUR 40, due automatically from the first day of late payment, without any formal notice being required. If actual recovery costs exceed EUR 40, the creditor may claim additional compensation with supporting documents.

Is a formal notice required to claim penalties?

No. Late payment penalties are due automatically (de plein droit), without any reminder or formal notice. They accrue from the day after the payment date stated on the invoice.

Can you waive late payment penalties in a contract?

The supplier may choose not to claim the penalties, but cannot contractually waive them in advance. Any clause excluding late payment penalties is deemed unwritten under French law.

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