Late Payment Interest Calculator For Malaysian Businesses
- Rule & Co Editorial Team
- 6 hours ago
- 1 min read
As covered in our guide on late payment interest, while Malaysian courts generally uphold agreed interest clauses, excessively high rates may be challenged as punitive or unconscionable.
In commercial transactions, a rate of 18% per annum is considered a standard benchmark which works out to:
1.5% per month, or
approximately 0.0493% per day
Additionally, interest is charged only on the outstanding principal and not on accrued interest, which gives us the following formula:
Outstanding Amount × Annual Interest Rate × (Days Overdue ÷ 365)
Of course, you are welcome to use our calculator below which also generates a late payment reminder email you can send to your clients.
Late payment interest calculator
Note: This calculator is set to a default interest rate of 18% per annum, so if your terms specify a different once, replace our rate with yours so you generate an accurate reminder!
Recover your outstanding payments with Rule & Co.
Missed deadlines and late payment interest acrruing across many months are warning signs that recovering the outstanding amount may not be so straightforward.
For those in this situation, a firm lawyer's letter of demand often does wonders to encourage prompt repayment - get in touch for a free case assessment!
Otherwise, that's it from us, and we wish you a smooth recovery 🙂
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