Post Judgment Interest Calculator

Post-Judgment Interest Calculator

1. What is the Post-Judgment Interest Calculator?

Definition: The Post-Judgment Interest Calculator estimates the interest accrued on a court-awarded judgment from the judgment date to the payment (writ) date, based on the judgment amount, annual interest rate, and the time between these dates.

Purpose: This tool helps creditors calculate additional compensation for delayed payment of a judgment, ensuring they are not financially disadvantaged due to the time value of money.

2. How Does the Calculator Work?

The calculator uses the following formulas:

$ I = A \times r \times \frac{d}{365} $

$ TA = A + I $

Where:

$ I $: Post-judgment interest ($);
$ A $: Judgment amount ($);
$ r $: Annual interest rate (decimal);
$ d $: Number of days between judgment date and writ date;
$ TA $: Total amount due ($).

Steps:

Enter the judgment amount, annual interest rate (e.g., from the Federal Reserve’s weekly average 1-year constant maturity Treasury yield), judgment date, and writ date.
Calculate the number of days between the judgment date and writ date.
Calculate post-judgment interest using the formula above.
Calculate the total amount due: sum of judgment amount and interest.
Display results in currency format, with daily interest rate as a percentage.

Note: The interest rate is typically the weekly average 1-year constant maturity Treasury yield for federal judgments, published by the Federal Reserve.

3. Importance of Post-Judgment Interest Calculation

Calculating post-judgment interest is essential for:

Fair Compensation: Compensates creditors for the lost time value of money due to delayed payment of a judgment.
Financial Planning: Helps creditors estimate additional amounts owed, aiding in budgeting or settlement negotiations.
Legal Compliance: Ensures compliance with federal statutes like 28 U.S.C. § 1961, which governs post-judgment interest in federal courts.

4. Using the Calculator

Example: Calculate the post-judgment interest for a $100,000 judgment with a 0.14% annual interest rate, from July 27, 2024 (judgment date) to August 24, 2024 (writ date, 28 days later):

Judgment Amount ($ A $): $100,000;
Interest Rate ($ r $): 0.14% ($ 0.0014 $);
Days ($ d $): 28;
Post-Judgment Interest ($ I $): $ 100000 \times 0.0014 \times \frac{28}{365} \approx 10.74 $;
Total Amount Due ($ TA $): $ 100000 + 10.74 = 100010.74 $;
Daily Interest Rate: $ \frac{0.0014}{365} \approx 0.000003836 \approx 0.00\% $;
Result: Daily Interest Rate: 0.00%; Post-Judgment Interest: $10.74; Total Amount Due: $100,010.74.

5. Frequently Asked Questions (FAQ)

Q: What is post-judgment interest?
A: Post-judgment interest is the interest accrued on a court-awarded judgment from the judgment date until payment, compensating for the delay in payment.

Q: Where can I find the interest rate?
A: For federal judgments, use the weekly average 1-year constant maturity Treasury yield published by the Federal Reserve for the week preceding the judgment date.

Q: Why is post-judgment interest important?
A: It ensures creditors are compensated for the time value of money, encouraging timely payment by debtors and aligning with federal statutes like 28 U.S.C. § 1961.