How to Calculate Late-Payment Interest in Denmark
Danish late-payment interest is the reference rate plus 8 percentage points a year. Here is the formula, the start date and two worked examples, including one that spans a half-year change.
info General information, not legal advice. Rules and rates can change, so always check the current rules and get advice on your specific case. Disclaimer
Short answer
Late-payment interest is calculated as principal × annual rate × number of days / 365. The rate is the reference rate (Danmarks Nationalbank's lending rate on 1 January or 1 July) plus 8 percentage points. Interest runs from the due date if it was fixed in advance, otherwise from 30 days after the request for payment. Always check the current rate before you calculate.
What is late-payment interest?
Late-payment interest (morarente) is the interest a creditor can claim when a bill is paid late. The rules are in the Danish Interest Act (renteloven). Under section 5, late-payment interest is an annual rate equal to the reference rate plus 8 percentage points. The margin is the same whether the debtor is a business or a consumer.
Step 1: Find the start date
Under section 3 of the Interest Act, interest runs from the due date if it was fixed in advance, for example as a payment deadline on the invoice. If no due date was fixed, interest runs once 30 days have passed after the creditor sent a request for payment. Between businesses, payment terms of more than 30 days require the creditor's express acceptance (section 3 a).
Always put a due date on the invoice
With a specific due date, interest runs from that day. Without one, you have to wait 30 days after your request for payment before interest starts to run.
Step 2: Find the rate
The reference rate is Danmarks Nationalbank's official lending rate as fixed on 1 January and 1 July. The rate on 1 January applies to the first half of the year and the rate on 1 July to the second half. Add 8 percentage points and you have the annual late-payment rate for that period. You can find the current rate from Danmarks Nationalbank or on forbrug.dk.
An example from 2024: the lending rate was 3.75% on 1 January 2024 and 3.50% on 1 July 2024. Late-payment interest was therefore 11.75% a year in the first half and 11.50% in the second half.
Step 3: Calculate the interest
Late-payment interest is calculated as simple interest per day: principal × rate × number of days / 365. If an invoice for DKK 50,000 fell due on 1 March 2024 and was paid 75 days later, the interest is 50,000 × 11.75% × 75 / 365 = DKK 1,207.19.
When the period spans a half-year change
If the period spans 1 January or 1 July, split it and use the rate that applies to each part. Example: an invoice for DKK 20,000 fell due on 1 June 2024 and was paid on 31 July 2024. The first 30 days fall in the first half of the year (11.75%), the next 30 in the second half (11.50%):
- 20,000 × 11.75% × 30 / 365 = DKK 193.15
- 20,000 × 11.50% × 30 / 365 = DKK 189.04
- Total interest: DKK 382.19
Show the calculation in the claim
State the principal, due date, rate and period in your reminder or debt collection notice. The debtor can then check the calculation, and the notice contains the information needed to assess the claim.
Can a different rate be agreed?
Between businesses, a different rate can as a rule be agreed, as long as the agreement is clear and not unreasonable. With consumers, the rules cannot be departed from to the consumer's detriment (section 7 of the Interest Act). Nor is there a special higher rate once the case goes to court: so-called litigation interest is calculated under the same rules. Read more in our article on the Interest Act.
Frequently asked questions
Is interest charged on the fees?
Late-payment interest is calculated on the principal, the original amount. Reminder fees and fixed compensation are separate amounts alongside the interest.
Where do I find the current reference rate?
From Danmarks Nationalbank or on forbrug.dk, which publishes the late-payment rate for each half-year. Our interest calculator uses the rates we have checked.
Does interest keep running while the case is with debt collection?
Yes. Interest runs until the claim is paid, including while the case is with a debt collection agency or in court.
Getting started
Use our interest calculator, which also calculates reminder fees, fixed compensation and the cap on collection costs. Through InkassoHurtig you can get no-obligation quotes from police-authorised debt collection agencies and lawyers. This content is general information and not legal advice.