A judgment from the court may include an amount for interest. If it does not, calculating interest on judgments can be complicated, and if you do not know how to do this or if you do not fully understand it, talk to an attorney. The following are some simple steps for calculating interest. Not every case allows for a simple answer, however. The amount of interest due could be influenced by whether the litigant has already received partial payment of the judgment or interest. Nevertheless, the following steps should be helpful to many unrepresented persons:
A Basic Method for Calculating Interest on a Judgment
Step 1: Multiply $ ______[J]_____ x _____[I]______% = [A]
judgment amount x interest rate = annual amount of interest due
Step 2: Divide [A] by 365 = [D] the daily interest amount
Step 3: Multiply the daily interest amount [D] times the number of days since the date stated in the judgment to determine the amount of interest owed.
Example: Judgment of $2000; interest rate of 6% per year; 280 days since the date the small claims petition was filed.
1. $2000 x .06 = $120 annual interest
2. $120/365 = $.329 per day
3. $.329 x 280 days = $92.05 interest owed
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