Free tool for collection law attorneys. No signup required. Instant results.
Estimate Only: This tool provides a mathematical estimate for informational purposes. It does not constitute legal advice. Always verify applicable state statutes and consult qualified legal counsel before relying on any calculation in a legal proceeding.
The original unpaid balance owed by the debtor.
Enter the statutory or contractual annual rate (e.g., 8% for many states). Common state rates: CA 10%, TX 6%, NY 9%, FL 8%.
Usually the date the debt became due or the judgment date.
The date through which interest is calculated (often today or a payment date).
Most post-judgment statutory interest uses simple interest. Check your state statute.
Simple Interest (most common): Interest = Principal x (Annual Rate / 100) x (Days / 365). The daily interest is calculated as Principal x (Rate / 100) / 365. This is the standard formula used for most state statutory post-judgment interest calculations.
Compound Interest, Monthly: Uses the formula A = P x (1 + r/12)^n, where r is the annual decimal rate and n is the number of full months elapsed. This applies in cases where a contract specifies compounding.
Compound Interest, Daily: Uses the formula A = P x (1 + r/365)^d, where d is the number of days elapsed. This is less common in judgment contexts but may appear in certain contractual debt instruments.
The calculator counts calendar days between the start date and end date (inclusive of the start date, exclusive of the end date, consistent with standard legal day-count conventions).
What interest rate should I use for a post-judgment debt in my state?
Each state sets its own statutory post-judgment interest rate, which can range from 5% to 12% or more annually. Some states (like California) use a fixed 10%, while others (like the federal courts) use a floating rate tied to Treasury bills. Always verify the current rate under your specific state's judgment interest statute before using it in a legal filing.
Can I use this calculator for pre-judgment interest claims?
Yes. Enter the date the debt became due (or the contract breach date) as your start date and the anticipated judgment date as your end date. Pre-judgment interest rules vary widely by state and claim type, so confirm entitlement and the applicable rate with the relevant statute or case law before including pre-judgment interest in your demand or pleading.
Does compounding interest apply to collection judgments?
In most U.S. jurisdictions, post-judgment statutory interest accrues on a simple interest basis, not compound. Compound interest may apply if the underlying contract expressly provides for it and the court incorporates that rate into the judgment. If you are unsure which method governs your matter, review the original debt instrument and confirm with your state's applicable statute or controlling case law.
This tool is for informational and estimation purposes only. It does not constitute legal advice.
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