Facts checked on 27 October 2026. Published by MDG Services on 26 October 2026.
Interest on a transporter's late payment, worked out from your own rate, with every step shown. For a petrol pump whose regular customers take diesel on credit.
Work out the interest
How it works
- Simple interest: amount × yearly rate × days late ÷ 365.
- Monthly compounding: every full 30 days adds one twelfth of the yearly rate to what is owed, and the next month's interest is worked on the bigger total. Leftover days, under 30, are added at simple interest on the total so far.
- Rounded to the nearest rupee.
- What it costs you: if you type what you pay on your own borrowing, the calculator also shows what the late money costs you at that rate, whether or not you charge the transporter.
With a made-up rate of 10% a year, not a rate to use: Rs 73,000, 60 days late.
| Kind | Working | Interest |
|---|---|---|
| Simple | Rs 73,000 × 10% × 60 ÷ 365 | Rs 1,200 |
| Monthly compounding | Rs 73,000 grows by 10% ÷ 12 = 0.833% a month for 2 months, to Rs 74,222 | Rs 1,222 |
Can you charge it?
The clearest case is when the transporter agreed to interest in writing before the first credit fill: on the bill, in your terms or on your credit form. Write the rate and the day it starts. Where nothing was agreed, a court decides Interest Act 1978, s.3. The full picture: interest on udhar.
A supplier with Udyam registration has a separate rule on late payment, which this calculator does not work out. See the MSME 45-day rule; whether a pump qualifies is doubtful.
General practice, not a rule: interest is often hard to collect. Credit days, a limit and a clear reminder come first. See reminder messages and when to stop credit.
General information, not legal advice. For your own case, speak to an advocate or a chartered accountant.
Questions people ask
01How do I calculate interest on a late payment?
Multiply the amount by the yearly rate and by the days late, then divide by 365. With a made-up 10% a year, Rs 73,000 that is 60 days late gives Rs 1,200.
02Udhar par byaj kaise nikale?
Type the amount, the days late and your yearly rate in the boxes above. If your rate is per month, multiply it by 12: 2% a month is 24% a year.
03What rate of interest can I charge on late payment?
The rate you agreed with the transporter before the first credit fill. This page does not suggest one. Where nothing was agreed, a court decides Interest Act 1978, s.3.
04Simple or compound interest: which one do I use?
The one the transporter agreed to. If the bill or your terms say nothing about compounding, work out simple interest.
05Does the calculator save what I type?
No. The sum is worked out on your own phone or computer, and nothing you type is stored or sent.
06Does Khata Kavach add interest to what a transporter owes?
No. Khata Kavach keeps the account: fills, payments and what is owed. It does not add interest, and it never lends or holds money.
Related pages
About Khata Kavach (advertisement)
Khata Kavach is a shared credit book for petrol pumps, from MDG Services. The transporter asks before each truck fills, your nozzle man sees the limit before he fills, and both of you see every fill, payment and bill. It never lends or holds money.