MSME late payment interest calculator
For registered micro and small suppliers. Enter the invoice, the date of acceptance and the payment date. See the legal due date, the days late and the interest the buyer owes.
- Following up an overdue invoice
- Buyers checking their dues
- Year-end payables review
Invoice and dates
Interest due
General information, not legal or tax advice. Rules change and differ by state; check with your CA or labour consultant before you act. Everything you type stays in your browser.
Made for people like you
How to use it
- Enter the invoice amount and the date the buyer accepted the goods or services.
- Enter the payment date, the agreed credit days and the current RBI bank rate.
- See the due date, days late and the interest owed.
Good to know
The 45-day rule
Under the MSMED Act, a buyer must pay a registered micro or small supplier within the agreed period, which cannot be more than 45 days from acceptance. With no written agreement, the limit is 15 days.
How interest works
If the buyer pays late, interest runs from the due date at three times the RBI bank rate, compounded monthly. This tool compounds for each full month and adds simple interest for the remaining days.
Tax effect for buyers
Buyers who pay micro and small suppliers late cannot claim that expense in the year until it is paid, and the interest itself is not deductible. Confirm the current rules with your CA.
Recovery
Suppliers can file a delayed payment case on the government's MSME Samadhaan portal. Keep invoices and acceptance proof ready.
Questions people ask
Is it free? Do I need to sign up?
Yes, it is free and you do not need to sign up. Open it and use it as often as you like.
Is my data safe?
The numbers are worked out in your browser. Nothing you type is sent to USR unless you choose to email yourself the result.
How accurate is the result?
It is an estimate based on the rules shown on this page as of November 2026, not legal or tax advice. Rules and rates change, so check with your CA before you act.
Who can claim this interest?
Micro and small enterprises registered on Udyam, for goods and services they supply. Medium enterprises are not covered by this rule.
Which bank rate do I use?
The bank rate notified by RBI. Enter the current rate from rbi.org.in, since it changes with RBI policy.
Get paid on time, every time
USR Billing sends reminders before and after the due date, and USR Books shows who owes what, with ageing, on one screen.
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