Calculate the late payment interest (penalty interest) amount based on debt size, days overdue and the agreed or statutory rate.
| Case | Default rate (if parties did not agree otherwise) |
|---|---|
| Between natural persons / consumers | 5% annual interest (CK Art. 6.210 §1) |
| Between businesses (B2B) | 6% annual interest (CK Art. 6.210 §2) |
| Late payment under a commercial transaction | ECB refinancing rate + 8 p.p. (Late Payment Prevention Act) |
These rates apply under Lithuanian law when the parties have not agreed on a specific penalty interest amount in the contract. Most contracts (utilities, telecom, rent) set their own, often higher, daily rate (e.g. 0.02–0.05%/day) — check your contract. The calculator's main field lets you enter any rate.
The default rates set out in Article 6.210 of the Lithuanian Civil Code (CK) apply — 5% per year between natural persons, 6% per year between businesses, unless the parties agreed otherwise.
Under Lithuanian case law, penalty interest can be reduced by a court (CK Art. 6.73) if it is clearly disproportionate and upsets the balance of the parties' interests — especially if the total penalty interest exceeds the debt itself.
Penalty interest = debt × rate (%/day) × number of days overdue. The rate is usually set in the contract (e.g. 0.02% per day ≈ 7.3% per year).
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