To calculate the interest due on a late payment, the amount of the debt should be multiplied by the number of days for which the payment is late, multiplied by daily late payment interest rate in operation on the date the payment became overdue.
Amount of debt: €1000
Number of days late: 25 days
Late Payment Interest rate in operation on the date the payment became overdue: 8.00%
Daily interest rate in operation on payment date: 0.022%
Calculation as follows:
1000 x 25 x 0.022 = 550 = €5.50 (550 divided by 100)