Penalty interest

Counting the penalty interest

If the tenant does not pay the rent fully on the agreed day, the landlord has the right to collect a penalty interest accordingly to the interest act. 

The penalty interest is counted as follows:

Interest percentage x amount ot days that the rent is latë x the amount of late renẗ
100 x 360

The interest percentage is codified in the interest act. The percentage is the European Central Bank’s reference interest + 7 %. The interest percentages can be seen on the Finnish Bank’s webpage.

The penalty interest can be charged on due, unpaid rent from the day following the due date to the payment day. When counting the interest day, a month is 30 days and the year is 360 days.


The rent (630 euros) is paid 20.3. and the due date was 2.3. The interest percentage is 7.

Viivästyskoron määrä lasketaan seuraavasti:

The penalty interest is counted as follows:

7 x 18 x 630  = 2,21 euros

100 x 360