Calculate Outstanding Rent and Statutory Interest
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Add each rent period to calculate arrears and interest.
Tip: Keep adding rent periods until the arrears total matches your ledger.
Total rent due
£750.00
Total paid
£0.00
Outstanding arrears
£750.00
We use a simple 8% per annum rate on any outstanding balance from its due date up to today. Actual court awards may differ depending on jurisdiction and judge discretion. Use this as a directional estimate only.
Upgrade to the Money Claim Pack for a pre-filled claim form, particulars of claim, PAP/Pre-action letters, and an arrears schedule you can file immediately.
Maintain a detailed rent ledger showing every payment due and received. Include dates, amounts, and payment methods. Bank statements alone are not enough—courts prefer a clear schedule showing the running balance.
Under the Late Payment of Commercial Debts (Interest) Act 1998, you may claim interest at 8% per annum on outstanding rent. This is simple interest, calculated from the due date to the date of payment or judgment. Always state in your pre-action letter that you intend to claim interest.
Before starting court proceedings, send a formal letter before action giving the tenant a final opportunity to pay. Include the total arrears, interest claimed, and a deadline (typically 14 days). This demonstrates to the court that you've tried to resolve the matter without litigation.
How should I evidence rent arrears for court?
Prepare a clear rent schedule showing all payments due and received, with a running balance. Attach your tenancy agreement, bank statements highlighting missed payments, and copies of all communications with the tenant about the arrears. The court wants to see you've made reasonable attempts to resolve the issue before litigation.
Can I claim interest on rent arrears?
Yes. You can claim statutory interest at 8% per annum under the Late Payment of Commercial Debts (Interest) Act 1998. Interest runs from each payment's due date until it's paid or judgment is entered. You must state your intention to claim interest in your pre-action letter. Some tenancy agreements include contractual interest clauses—check yours carefully.
What if my tenant disputes the arrears amount?
Request a detailed breakdown from the tenant showing which payments they believe they've made. Check your records carefully—mistakes happen. If there's a genuine dispute, consider mediation before court. If the tenant simply refuses to pay without valid reason, proceed with your money claim and let the court decide. Keep all communication professional and documented.
Should I serve a Section 8 notice or file a money claim?
It depends on your goal. A Section 8 notice (Ground 8 requires 8+ weeks arrears) seeks possession of the property. A money claim pursues the debt even after the tenant has left. Many landlords do both: serve a Section 8 to regain possession, then file a money claim for any remaining debt. Our Complete Pack guides you through both processes.
Is this calculator's 8% interest calculation legally accurate?
This calculator uses the standard statutory rate of 8% per annum as simple interest. While widely accepted, actual court awards may vary based on jurisdiction, the judge's discretion, and your specific tenancy agreement. For a court-ready arrears schedule with jurisdiction-specific calculations and full legal validation, upgrade to our Money Claim Pack.