How are penalty rates for unpaid invoices calculated?

Here's what you need to know about penalty rate on late or unpaid invoices :

• In the event of unpaid invoices, you can apply late payment penalties to your customers.

• The minimum legal rate in 2025 = ECB rate + 10 points (e.g. 13.15% if ECB = 3.15%).

• This rate is updated twice a year (January 1 and July 1).

• Penalties are calculated as follows: Amount incl. VAT × (Annual rate / 365) × Number of days overdue

• Example: for an invoice of €1,000 inc. VAT, 30 days' delay at 13.15% = €10.82.

• You must mention the penalty rate and the €40 collection fee on the invoice.

• If these details are missing, you lose the right to claim penalties.

• An excessive rate may be rejected by a judge. Stay between 13% and 20%.

• Hero helps automate receivables monitoring and financing.

What is the late payment penalty rate in 2025?

Since 2013, the legal rate of late payment penalties between professionals is strictly regulated:

it cannot be less than three times the legal interest rate or current ECB rate + 10 points .

This rate is updated twice a year (on January 1 and July 1) and published on Service-Public.fr .

Calculation example

If the ECB rate is 3,15 % then the minimum penalties of retard will be :

→ 3.15% + 10 = 13.15% for an

📌 Important :

• This rate applies to in the absence of a rate specified in your General Terms and Conditions .

• You can include a higher rate in your general terms and conditions of sale (as long as it remains reasonable).

• The calculation is made on the amount including tax of the unpaid invoice.

How do you calculate late payment penalties on an invoice?

The calculation of late payment penalties is governed by law. They are calculated in proportion to the number of days overdue.

The calculation formula

To calculate the amount of penalties :

Amount incl. VAT × (Annual rate / 365) × Number of days overdue

The annual rate used is the one specified in your General Terms and Conditions or, failing that, the minimum legal rate (ECB + 10 points).

Calculation example

• Invoice amount incl. VAT : 1 000 €

• Annual rate applied : 13,15 %

• Retard : 30 days

Penalties = 1,000 × (13.15 / 365) × 30 = €10.82

This amount is round to two decimal places and can be added to a facture distincte or indicated in a have penalties .

When should the penalty rate be indicated on an invoice?

When issuing the initial invoice, you must mention :

• Le late penalty rate applied

• Le lump sum of €40 due for collection costs in the event of late payment

These details are mandatory for all sales between professionals ( article L441-10 of the French Commercial Code) .

If they are absent, you lose the right to legally demand these penalties .

What do you risk if you exceed the legal rate?

You can set a rate higher than the legal minimum, but it must remain within the legal minimum. reasonable and justified .

An excessive rate can be :

• Contested by the customer

• Rejected by a judge in the event of litigation

Stay within a range between 13% and 20% per year to limit risks.

Heropay helps you apply penalties without friction

Hero helps you monitor your payment flows more effectively and finance your receivables more rapidly.

With Hero Pro, you can get up to €50,000 in financing without waiting for payments from your customers.