Debt Collection Cost Calculator

Debt collection costs are capped by law. Since 1 June 2025, updated fee rates have applied under the KostBRÄG 2025 (Kostenrechtsänderungsgesetz, the 2025 cost law amendment act). Debt collection agencies may not charge more than a lawyer would. This is set out in the Rechtsdienstleistungsgesetz (RDG, the German Legal Services Act).

The amount of the collection fees is based on the RVG fee table (Rechtsanwaltsvergütungsgesetz, the German lawyers' fees act) and on the level of difficulty:

• 0.5×: If you pay within 2 weeks of the first payment demand (prompt payer)
• 0.9×: Standard case for out-of-court debt collection
• 1.3×: Only for particularly difficult or disputed cases

What is allowed in debt collection?

• Collection fees under the RVG: Calculated as above, at most 1.3×
• Flat-rate expenses: 20% of the fee, at most €20, for post and telephone
• Default interest: 5% above the base rate (consumers) or 9% above the base rate (business to business)
• Reminder costs: about €2.50 per reminder (from the 2nd reminder) – a guideline from case law, not a statutory cap

What may debt collectors NOT do?

• No double fees: Charging for a collection agency AND lawyer's costs at the same time is not permitted
• No "processing fees": Flat charges on top of the RVG rates are prohibited
• No home visits without consent: Field-service costs may not be charged
• No charge for the first reminder: The first reminder is always free
• No inflated payment order costs: The court fee for a Mahnbescheid (court payment order) is a 0.5 fee under the GKG (Gerichtskostengesetz, the court fees act), at least €38

Received a letter from a debt collector: what to do?

1. Stay calm: A debt collection agency is not the police and not a bailiff (Gerichtsvollzieher)
2. Check the claim: Is the principal claim justified?
3. Check the costs: Use this calculator: are the costs permitted?
4. If in doubt, object: In writing, by registered post
5. Use debt counselling: Free help is available from Caritas, AWO, DRK and similar organisations

Base interest rate 2026

The Basiszinssatz (base interest rate) is announced every six months by the Bundesbank. Since 1 July 2026 it has been 1.52% (first half of 2026: 1.27%). For consumers this means default interest of 6.52% p.a. (5 percentage points above the base rate); for transactions without a consumer involved it is 10.52% (9 percentage points). The next reset date is 1 January 2027.

Collection costs are in principle recoverable only if you are in default. Under section 286 of the Civil Code (BGB), default usually requires a reminder; without one it occurs at the latest 30 days after the due date and receipt of an invoice that points out this consequence (section 286(3) BGB). If a payment date is fixed by the calendar, for example “payable by 15 November”, the debtor is in default as soon as that day passes. Only from that point can interest and the cost of instructing a collection agency be claimed as damages for delay under sections 280 and 286 BGB. A collection invoice that arrives before default has occurred is therefore open to challenge in principle.

Reputable collection agencies must be entered in the legal services register (rechtsdienstleistungsregister.de); registration as a debt collection service provider is governed by section 10 of the Legal Services Act (RDG). In addition, section 13a RDG requires clear information in the first letter: the name of the creditor, the reason for the claim, the date of the contract, a comprehensible calculation of interest and costs, and a note that you may raise objections. If these details are missing, that is a warning sign – and a good reason to ask in writing for the missing information first instead of paying.

For a principal claim of €500, the full fee under the RVG table is €51.50. In the standard case of 0.9 this is €46.35; added to that is the flat-rate expenses allowance of 20 per cent of the fee, i.e. €9.27. If you are 30 days in default, interest at 6.52 per cent (base rate of 1.52 per cent plus 5 percentage points for consumers) adds €2.68. In total you pay about €58.30 of additional costs on top of the €500. For a €1,000 claim, the fee and allowance come to 83.70 plus 16.74, or €100.44; for €5,000, because of the cap on the allowance, they come to 319.05 plus 20, or €339.05.

If you pay within the first two weeks of the first demand, the fee can be limited to 0.5. For €500 that would be only €25.75 instead of €46.35 – a difference of more than €20. The calculator's fee-factor setting shows you straight away how much a higher factor matters. Important: the 1.3 factor is reserved for difficult or extensive cases. For a simple money claim with no dispute that was just not paid, a factor above 0.9 can regularly not be justified.

If the claim stays unpaid, the creditor can apply to the competent dunning court for a payment order (Mahnbescheid, sections 688 et seq. of the Code of Civil Procedure, ZPO). You have two weeks to object to it (section 694 ZPO); this works with the enclosed form and you do not have to give reasons. If you do nothing, an enforcement order (Vollstreckungsbescheid) is issued on application, against which you again have two weeks to lodge an appeal. After that the claim becomes enforceable: a bailiff can then order the attachment of bank accounts or wages.

Do not forget limitation. The regular period is three years and starts at the end of the year in which the claim arose (sections 195 and 199 BGB). You may refuse to pay a time-barred claim by raising the defence of limitation. However, do not respond to collection letters with an acknowledgement of debt, which can worsen your position before you have examined the claim. If you are unsure, you can turn to free debt counselling or a consumer advice centre, which will also help check the cost calculation.