Calculate overdue charges with caps, taxes, and recoveries. Review interest growth clearly across every overdue day with charts.
| Input | Sample Value | Explanation |
|---|---|---|
| Overdue Principal | 10,000.00 | Amount unpaid after due date. |
| Annual Default Rate | 12% | Default rate applied to overdue balance. |
| Days Overdue | 45 | Total calendar days in default. |
| Grace Days | 5 | Days excluded before charging default interest. |
| Fixed Penalty Fee | 50.00 | One-time late charge. |
| Penalty Fee on Principal | 1.5% | Additional percentage-based penalty. |
| Tax on Charges | 5% | Tax applied to interest and penalties. |
| Partial Recovery | 2,000.00 on day 20 | Payment reduces outstanding balance later. |
Daily Default Rate = Annual Default Rate ÷ Day Count Basis
Chargeable Days = Max(0, Days Overdue − Grace Days)
Daily Interest = Outstanding Balance × Daily Default Rate
Simple Gross Interest = Sum of each day’s interest + Prior Accrued Interest
Penalty Amount = Fixed Penalty Fee + (Overdue Principal × Penalty %)
Tax Amount = (Gross Interest + Penalty Amount) × Tax Rate
Uncapped Charges = Gross Interest + Penalty Amount + Tax Amount
Final Charges = Minimum(Uncapped Charges, Charge Cap)
Total Amount Due = Overdue Principal + Final Charges
If partial recovery is entered, the calculator reduces the balance on the chosen day, then continues the accrual on the lower amount.
Default interest is an extra rate charged when a borrower misses a payment or breaches a loan term. It usually applies only after the due date or grace period ends.
Normal interest applies during regular loan performance. Default interest is a higher rate triggered by late payment or default, and it may be combined with penalties and taxes.
A 360-day basis produces slightly higher daily charges than a 365-day basis. Agreements often specify the basis, so matching it improves accuracy and compliance.
Use compounding only if the contract permits capitalizing overdue interest. Many agreements use simple accrual, while some institutional facilities allow daily or monthly compounding.
Yes. Enter the recovered amount and the day it was received. The calculator reduces the outstanding balance from that point onward, which lowers later interest charges.
The cap limits recoverable charges either by a fixed amount or by a percentage of principal. This helps model contractual ceilings or policy restrictions on late charges.
Yes, when you enter a tax or VAT rate. The calculator applies tax to interest and penalties, then adds it to the final charges before calculating the full amount due.
It is useful for estimation, internal review, and negotiation support. For formal notices, litigation, or regulated lending disputes, verify the exact contract wording and local rules.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.