1. What Is Post Judgment Interest?

Post judgment interest is the interest that accrues on a court judgment from the date it is entered until it is paid in full. It compensates the judgment creditor for the time value of money while awaiting payment.

2. How Does The Calculator Work?

The calculator uses the post judgment interest formula:

Where:

• \( Judgment \) — The original judgment amount in dollars
• \( Rate \) — The interest rate expressed as a decimal
• \( Days \) — The number of days since the judgment was entered

Explanation: This formula calculates simple interest based on the judgment amount, applying the specified rate for the exact number of days that have passed.

3. Importance Of Calculating Post Judgment Interest

Details: Accurately calculating post judgment interest is crucial for ensuring creditors receive the full amount they are owed, accounting for the time value of money and providing proper compensation for delayed payment.

4. Using The Calculator

Tips: Enter the judgment amount in dollars, the interest rate as a decimal (e.g., 0.05 for 5%), and the number of days since the judgment was entered. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical interest rate for post judgment interest?
A: Interest rates vary by jurisdiction but are often set by statute. Common rates range from 5-10% annually, but you should check your local laws for the specific rate.

Q2: How is the number of days calculated?
A: Days are typically counted from the date the judgment was entered until the date of payment or calculation, including weekends and holidays.

Q3: Is post judgment interest compounded or simple?
A: In most jurisdictions, post judgment interest is calculated as simple interest, not compound interest.

Q4: Are there limits on post judgment interest?
A: Yes, most jurisdictions have statutory limits on both the interest rate and the maximum amount of interest that can accrue.

Q5: Can post judgment interest be negotiated or waived?
A: In some cases, parties may agree to modify interest terms, but statutory interest rates typically apply unless specifically waived in a written agreement.