Legal Judgment Interest Calculator

Judgment interest is the interest awarded by a court on a monetary judgment from the date of the judgment until the debt is paid in full. It compensates the prevailing party for the time value of money they were deprived of while waiting for payment.

Legal interest rates are typically set by state statute and are often lower than commercial interest rates. They're designed to be fair compensation rather than punitive. The rate may vary depending on whether it's a contract case, tort case, or other legal matter.

No, each state sets its own statutory interest rate for judgments. Some states have fixed rates (e.g., 5% in California), while others use variable rates tied to financial indices. Always check your state's current legal rate before calculating.

Most states require simple interest (non-compounding) on judgments unless specifically ordered by the court or agreed in a contract. However, a few jurisdictions may allow compounding in certain circumstances. Our calculator uses simple interest by default.

For partial payments, calculate interest up to the payment date, then apply the payment first to accrued interest and any remainder to principal. You would then calculate new interest on the reduced principal from the payment date forward.

Our calculator provides accurate results based on standard simple interest calculations used in most jurisdictions. However, for official legal proceedings, always verify with your state's specific rules and consider consulting an attorney, as some cases may have unique circumstances.

Yes, you can calculate pre-judgment interest if you know the applicable rate and start date (often the date the cause of action arose). However, pre-judgment interest rules vary significantly by jurisdiction and case type, so verify the rules apply to your situation.

For variable rates, you would need to calculate interest for each period separately at the applicable rate, then sum the amounts. Our calculator currently handles a single fixed rate. For variable rates, you may need to perform multiple calculations for each rate period.

Some states cap the total interest that can accrue on certain types of judgments, while others allow interest to continue accruing indefinitely until paid. Check your state's laws regarding interest caps on judgments.

Interest on judgments typically becomes part of the judgment debt and can be collected through the same enforcement methods (wage garnishment, bank levies, etc.). You may need to file additional paperwork with the court showing the calculated interest amount.