Find out how much interest a client owes you on a late payment, using the MSME 45-day rule (3× the RBI bank rate, compounded monthly) or your own contract rate.
An estimate to help you know where you stand, not legal advice. For a formal claim, check with your CA or legal advisor.
Under the MSMED Act, 2006, a buyer must pay a micro or small enterprise within the agreed period, which can't be longer than 45 days (or 15 days with no written agreement). After that, interest is owed at three times the RBI bank rate, compounded every month. This calculator finds the due date, counts the days late, and works out the interest.
1. Enter the invoice
The amount and the date the work was accepted.
2. Pick the terms
Your agreed payment period, up to 45 days.
3. See what's owed
Interest, total due, and a note to send your client.
What is the MSME 45-day payment rule?
Under the MSMED Act, 2006, a buyer must pay a micro or small enterprise by the date agreed in writing, and that date can’t be more than 45 days after the goods or services were accepted. If there’s no written agreement, payment is due within 15 days.
How much interest can an MSME charge on late payments?
If the buyer pays late, they owe compound interest with monthly rests at three times the bank rate notified by the RBI. With the RBI Bank Rate at 5.75% (as of 7 October 2026), that works out to 17.25% per year, compounded monthly.
Who can claim interest under the MSMED Act?
Suppliers registered as micro or small enterprises under Udyam, for goods or services supplied to a buyer. Medium enterprises are not covered by these delayed-payment rules. The interest is payable by law, even if your invoice doesn’t mention it.
What can I do if a client still doesn’t pay?
Start with polite reminders that mention the amount and the MSMED Act. If that doesn’t work, micro and small enterprises can file a delayed-payment complaint on the government’s MSME Samadhaan portal, which refers the case to the MSE Facilitation Council for conciliation or arbitration.
Is this calculation legally exact?
It’s a close estimate to help you know where you stand. The exact figure can depend on the acceptance date, the bank rate in force during the delay and how months are counted. For a formal claim, check the figures with your chartered accountant or legal advisor.
DueBlink reminds your clients before and after the due date, step by step, so payments come in on time and you never have to chase by hand.