As we mentioned earlier in the previous lines, default interest is the percentage that is charged when a payment or instalment has not been paid at the time of its execution. Find out how to know and calculate default interest = (amount due) x (invoice payment period divided by 365 days) x (default interest rate specified in the contract or otherwise specified by law). As we saw in the previous post on late payment interest in the late payment law, there are a lot of doubts about the opportunities they can be, how to calculate and collect default interest, when they should start calculating default interest, how much is a person who has not respected his agreement, we have to pay, know how to calculate default interest, for how long and if it does not matter what type of debt it is and whether the debtor is a business or a consumer. In the previous section, we saw the formula for how to calculate standard interest rates. Next, we will show you an example to make it easier for you to apply and calculate it. A simple formula for calculating legal interest and getting the amount that must be paid or received for a debt is as follows: to know how to calculate default interest, we must first be clear about the type of delay and from what point we can start, count the days of delay of this breakdown. This data allows us to know how to calculate default interest. Let`s see them: if a person does not fulfill his obligations to the Ministry of Finance, that is, he does not satisfy the debts, he will be punished by the tax administration. Legal interest is used as the basis for calculating the penalty and subsequently calculating the penalty to be applied to the taxpayer, if any.
As you already know, ICIRED is a company whose initial objective is to provide users with truthful information about changes and updates in business transactions. Due to the large number of requests you have made to us on how to calculate default interest, we have created the online platform that allows you to know if the people you will work with are complying with the agreements made in the context of the business relationship. That`s why we provide everyone with a registry open to all, where you can check if there are any faults. Its operation is really very simpleImplemente the amount from which you must calculate the interest, choose the date from which the term begins to count, choose the date on which you must calculate the accrued interest, and finally choose one of the two methods of calculation (legal interest or judicial interest). The first calculator to perform historical calculations since 1940. Carlos is a marketing and communication specialist and has incurred a debt with Javier for the realization of an online advertising campaign design (banners, gifs, covers, etc.). The amount of the debt is 2,300 euros, with the invoice date of 30 September 2017 and the maximum payment date of 6 October 2017. In their agreement on the provision of services, they had not agreed to any default interest. More than a month passed and Carlos did not make the payment, so Javier out of 9. November 2018 decides to send a Burofax and claim the unpaid debts in writing. The payment of the debt is still not made, so Javier decides to take legal action that ends with a judgment on January 9, 2018, in which it is agreed that Carlos Javier must pay the amount due plus default interest.
Let`s see how to calculate default interest. How to calculate interest in this case? Let`s move on to the advanced calculator. Once there, the user can fill in the date fields separately. The advantage is that you don`t have to waste time changing fields with stable content. In case you need to calculate the legal interest on the money of a certain amount, there is a very simple formula to calculate the legal interest to know the exact amount that is due to you or that must be paid to you. In practice, the fixed interest rate can be very important in the calculation of significant penalties, compensations, etc. In the case of transactions between companies or individuals, default interest usually appears in the contract signed between the parties, and this is the amount that must be paid as a penalty. If such a clause has not been included, the legal interest on the money and the amount of unpaid loan payments will be incurred. In the case of certain transactions where it is not possible to recover the due in time, it is when legal interests arise. This is a type of compensation intended for cases of breach of an acquired obligation.