MSME delayed payment interest calculator
If a buyer pays a micro or small supplier late, the MSMED Act says they owe interest: three times the RBI bank rate, compounded monthly. Enter the bill to see how much.
- Days late
- Interest rate
- Interest owed
- Bill plus interest
Not late yet, so no interest.
Section 16 of the MSMED Act says a buyer who pays a micro or small supplier late owes compound interest with monthly rests at three times the bank rate notified by the RBI. We compound each whole month, rounding to the paisa, and add simple interest for the remaining days. This is a guide, not legal or tax advice.
RBI bank rate 5.50%, in force from 05 Dec 2025, checked on 02 Oct 2026.
Sources
Doing this for 40 bills?
BusyCounter sends it for every bill, on the right day, and tells you who paid.