Post Judgment Interest Calculator

Calculate interest on court judgments

Determine the interest accrued on a court judgment from the judgment date to the present or a specified date. This calculator uses compound interest formulas to compute daily, monthly, or annual interest on judgment amounts.

Common Post Judgment Interest Scenarios

Explore typical judgment interest calculations

Personal Injury Settlement

Personal Injury

Calculate interest on a $75,000 personal injury judgment

Principal Amount: $75000

Annual Rate: 6%

Judgment Date: 2023-01-15

Calculation Date: 2024-01-15

Compounding: Daily

Contract Dispute Award

Contract Dispute

Interest on a $25,000 contract breach judgment

Principal Amount: $25000

Annual Rate: 8.5%

Judgment Date: 2023-06-01

Calculation Date: 2024-06-01

Compounding: Daily

Employment Discrimination Case

Employment Case

Post-judgment interest on a $100,000 employment award

Principal Amount: $100000

Annual Rate: 7.25%

Judgment Date: 2023-03-10

Calculation Date: 2024-03-10

Compounding: Daily

Property Dispute Judgment

Property Dispute

Interest calculation for a $45,000 property damage award

Principal Amount: $45000

Annual Rate: 5.75%

Judgment Date: 2023-09-20

Calculation Date: 2024-09-20

Compounding: Monthly

Other Titles
Understanding Post Judgment Interest: A Comprehensive Guide
Learn how post-judgment interest works and how to calculate it accurately

What is Post Judgment Interest?

  • Legal Basis
  • Purpose and Function
  • When It Applies
Post-judgment interest is the interest that accrues on a court judgment from the date the judgment is entered until the judgment is paid in full. This interest is designed to compensate the judgment creditor for the delay in receiving payment and to encourage timely payment of judgments.
Legal Basis
Post-judgment interest is typically governed by state law, though federal judgments follow federal interest rates. Most states have specific statutes that establish the rate and method of calculating post-judgment interest. The rate is often tied to the prime rate, Treasury bill rates, or a fixed statutory rate.
Purpose and Function
The primary purposes of post-judgment interest are to: 1) Compensate the judgment creditor for the time value of money, 2) Encourage prompt payment of judgments, 3) Prevent judgment debtors from benefiting from delayed payment, and 4) Maintain the real value of the judgment amount over time.
When It Applies
Post-judgment interest applies to most monetary judgments, including personal injury awards, contract disputes, employment cases, and property damage claims. It typically begins accruing on the date the judgment is entered by the court and continues until the judgment is satisfied or the statute of limitations expires.

Real-World Examples

  • A $50,000 personal injury judgment with 6% annual interest accrues $8,219.18 in interest over 2 years with daily compounding
  • A $25,000 contract dispute judgment with 8% annual interest results in $4,161.23 in interest over 18 months

Step-by-Step Guide to Using the Post Judgment Interest Calculator

  • Input Requirements
  • Calculation Process
  • Interpreting Results
Using the Post Judgment Interest Calculator involves entering the judgment details and understanding how the interest accumulates over time. The calculator uses compound interest formulas to provide accurate results based on your specific circumstances.
Input Requirements
To calculate post-judgment interest, you need: 1) The principal amount (original judgment), 2) The annual interest rate (set by law or court order), 3) The judgment date (when interest begins accruing), 4) The calculation date (when you want to know the total), and 5) The compounding frequency (how often interest is added to the principal).
Calculation Process
The calculator uses the compound interest formula: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the annual interest rate, n is the number of compounding periods per year, and t is the time in years. For daily compounding, n = 365; for monthly, n = 12; for annual, n = 1.
Interpreting Results
The calculator provides: 1) Total interest accrued (the additional amount due to interest), 2) Total amount owed (principal plus interest), 3) Daily interest rate (the effective daily rate), and 4) Days elapsed (the time period for the calculation). These results help you understand the full financial impact of the judgment.

Calculation Examples

  • Enter $75,000 principal, 6% annual rate, judgment date 2023-01-15, calculation date 2024-01-15, daily compounding to get $4,561.64 in interest
  • Use $100,000 principal, 8% annual rate, 2-year period with monthly compounding to calculate $17,166.40 in interest

Real-World Applications of Post Judgment Interest

  • Personal Injury Cases
  • Business Disputes
  • Employment Law
  • Property Claims
Post-judgment interest plays a crucial role in various legal scenarios, affecting both plaintiffs and defendants in different types of cases. Understanding how it works helps parties make informed decisions about settlement and payment strategies.
Personal Injury Cases
In personal injury cases, post-judgment interest can significantly increase the total amount owed. For example, a $100,000 judgment with 6% annual interest accrues approximately $6,000 per year. This creates pressure on defendants to settle or pay promptly, while providing fair compensation to injured parties for delayed payment.
Business Disputes
Contract disputes and business litigation often involve substantial amounts where post-judgment interest becomes a major factor. Companies may choose to pay judgments quickly to avoid accumulating interest, or negotiate structured payment plans that minimize interest costs.
Employment Law
Employment discrimination, wage claims, and wrongful termination cases frequently result in judgments with post-judgment interest. The interest can be substantial over time, especially in cases involving back pay, front pay, and punitive damages.
Property Claims
Property damage, eminent domain, and real estate disputes often involve post-judgment interest calculations. The interest helps ensure that property owners receive fair compensation that maintains its value over the time between judgment and payment.

Application Examples

  • A $500,000 employment discrimination judgment with 7% interest accrues $35,000 annually
  • A $1 million contract dispute with 5% interest results in $50,000 per year in additional liability

Common Misconceptions and Correct Methods

  • Interest Rate Confusion
  • Compounding Misunderstandings
  • Timing Issues
  • Payment Application
Several misconceptions surround post-judgment interest calculations, leading to errors in understanding the total financial impact of judgments. Understanding these common mistakes helps ensure accurate calculations and proper financial planning.
Interest Rate Confusion
Many people confuse pre-judgment and post-judgment interest rates. Pre-judgment interest compensates for damages before the judgment, while post-judgment interest applies after the judgment is entered. The rates and calculation methods often differ significantly between these two types of interest.
Compounding Misunderstandings
A common mistake is assuming simple interest instead of compound interest. Post-judgment interest typically compounds, meaning interest earns interest. Daily compounding is most common, but monthly or annual compounding may apply depending on jurisdiction and circumstances.
Timing Issues
Interest begins accruing on the judgment date, not the date of the underlying incident or the date of filing. Some people incorrectly calculate from the wrong starting point, leading to significant errors in the total amount owed.
Payment Application
When partial payments are made, they typically apply first to accrued interest, then to the principal. This affects future interest calculations. Understanding this priority helps in planning payment strategies and negotiating settlements.

Common Errors

  • Simple interest on $50,000 at 6% for 2 years = $6,000; compound interest = $6,180
  • Interest starting from incident date instead of judgment date can result in overcalculation by months or years

Mathematical Derivation and Examples

  • Compound Interest Formula
  • Daily Compounding Calculation
  • Monthly vs Annual Compounding
  • Effective Annual Rate
The mathematical foundation of post-judgment interest lies in compound interest formulas. Understanding these formulas helps verify calculations and make informed decisions about payment strategies and settlement negotiations.
Compound Interest Formula
The basic compound interest formula is: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the annual interest rate (as a decimal), n is the number of compounding periods per year, and t is the time in years. The interest earned is A - P.
Daily Compounding Calculation
For daily compounding, n = 365. The formula becomes: A = P(1 + r/365)^(365t). For example, $50,000 at 6% annual interest for 1 year with daily compounding: A = 50,000(1 + 0.06/365)^365 = $53,092.27, with $3,092.27 in interest.
Monthly vs Annual Compounding
Monthly compounding uses n = 12: A = P(1 + r/12)^(12t). Annual compounding uses n = 1: A = P(1 + r)^t. More frequent compounding results in higher total interest. For example, $100,000 at 8% for 2 years: daily = $117,349.86, monthly = $117,165.94, annual = $116,640.00.
Effective Annual Rate
The effective annual rate (EAR) shows the true annual interest rate when compounding is considered. EAR = (1 + r/n)^n - 1. For 6% annual rate with daily compounding: EAR = (1 + 0.06/365)^365 - 1 = 6.1837%. This helps compare different compounding frequencies.

Mathematical Examples

  • Daily compounding formula: A = P(1 + r/365)^(365t) for precise daily interest calculation
  • Effective annual rate calculation: EAR = (1 + 0.08/12)^12 - 1 = 8.30% for monthly compounding