Enter an invoice amount and its due date to calculate the statutory compound interest a buyer owes a registered MSME under Section 16 of the MSMED Act 2006 — currently around 20.25% p.a., compounded monthly.
Free Assessment ➔ Login ➔ Upload ➔ Process Fee
Documents are uploaded securely from your client portal after login.
Under Section 15 of the MSMED Act, a buyer must pay a registered MSME supplier within 45 days of accepting goods or services. Once that window passes unpaid, Section 16 entitles the MSME to compound interest at three times the RBI-notified bank rate — currently around 20.25% per annum, compounded monthly rather than added as a flat annual charge.
This calculator applies that formula to your invoice amount and dates to show the statutory interest accrued so far, alongside the principal. See a full worked example with real numbers in Section 16 MSMED Act Interest: A Worked Example Calculation.
The figure shown is an estimate for assessment purposes. Submitting a claim through PayMSME triggers a free case review before anything is charged — the flat process fee only applies once a case is approved.