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Post Judgment Interest Formula:
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Post judgment interest is the interest that accrues on a monetary judgment from the date of entry until the judgment is paid in full. It compensates the judgment creditor for the time value of money and encourages prompt payment.
The calculator uses the compound interest formula:
Where:
Explanation: The formula calculates the future value of a judgment amount with annual compounding, accounting for both the principal and accumulated interest over time.
Details: Accurate calculation of post judgment interest is crucial for ensuring proper compensation, enforcing court judgments, and calculating the total amount owed by the judgment debtor.
Tips: Enter the principal amount in dollars, annual interest rate as a decimal (e.g., 0.05 for 5%), and time in years. All values must be valid (principal > 0, rate ≥ 0, time > 0).
Q1: What is the legal basis for post judgment interest?
A: Post judgment interest rates are typically set by statute and vary by jurisdiction. Courts award interest to compensate judgment creditors for the delay in payment.
Q2: How often is post judgment interest compounded?
A: Compounding frequency varies by jurisdiction. This calculator assumes annual compounding, but some jurisdictions may use different compounding periods.
Q3: Are there limits on post judgment interest rates?
A: Yes, most jurisdictions have statutory limits on the maximum interest rate that can be charged on judgments.
Q4: When does post judgment interest begin to accrue?
A: Interest typically begins to accrue from the date the judgment is entered by the court.
Q5: Can post judgment interest be negotiated or waived?
A: In some cases, parties may agree to different terms, but statutory interest rates apply unless specifically modified by court order or agreement.