A court judgment isn't the end of a legal dispute. It's the beginning of a collection problem. And while you're waiting to collect, the judgment is earning interest — at a rate set by statute, not by the market.
In California, that rate is 10% per year, fixed by Code of Civil Procedure § 685.010. In New York, it's 9% under CPLR § 5004, and courts have held it's mandatory — a judge can't reduce it. In federal courts, the rate this week is approximately 3.84%, tied to one-year Treasury yields under 28 U.S.C. § 1961.
Those differences matter. A $100,000 judgment in California earns $10,000 in interest every year it goes unpaid. The same judgment in a federal court earns about $3,840. Over five years, that's a $31,000 difference in leverage for a creditor — and urgency for a debtor.
How Judgment Interest Works — the Basics
Post-judgment interest is the statutory price of delay after a court has decided who owes what. It rewards creditors for waiting and pressures debtors to pay.
Simple interest is the default in most U.S. judgment statutes:
Interest = Principal × Annual Rate × (Days ÷ 365)
Example: $50,000 principal at 10% for exactly one year = $50,000 × 0.10 × (365/365) = $5,000 interest, $55,000 total.
Compound interest applies only where statute or contract explicitly requires compounding. Most state judgment interest statutes use simple annual accrual on the unpaid principal. Federal post-judgment interest under 28 U.S.C. § 1961 is computed as simple interest tied to weekly Treasury yields. Always confirm your state's formula — Colorado and a few contexts treat certain judgment categories differently.
When interest starts: Typically from the date of entry of judgment (when the clerk enters the judgment on the docket), not from the accident or breach date. Some states allow pre-judgment interest on certain contract claims — a separate topic covered below.
When interest stops: Upon full satisfaction of the judgment. Partial payments usually reduce the principal balance; interest continues on the remaining unpaid balance from the judgment date forward (unless the payment is characterized as interest first under state allocation rules).
Partial payments: If a debtor pays $20,000 on a $100,000 judgment after one year at 10%, the remaining principal is $80,000 plus any accrued but unpaid interest — states differ on whether interest is recalculated prospectively only on principal or whether unpaid interest is capitalized. California practice generally continues simple interest on the unsatisfied portion; verify with counsel for your jurisdiction.
Use TheLegalCalc's [judgment interest calculator](/judgment-interest-calculator) to model principal, rate, and elapsed days without spreadsheet errors.
Federal vs State Judgment Interest: The Distinction That Changes Everything
The most expensive mistake in judgment interest planning is applying the wrong rate because the wrong court system entered the judgment.
Federal judgments in U.S. district courts, bankruptcy courts (for allowed claims), and many federal agency adjudications use 28 U.S.C. § 1961. The rate tracks the one-year Treasury constant maturity yield, adjusted weekly. In June 2026, that rate has hovered near 3.84%–3.92%. It is not negotiable and does not mirror state statutory rates.
State court judgments use state post-judgment interest statutes — California's fixed 10% under CCP § 685.010 has no relationship to the federal Treasury formula.
Critical scenario: You win a federal diversity case in Los Angeles over a contract dispute. The judgment is a federal court judgment — interest accrues under § 1961 (~3.84%), not California's 10% state rate. You win an identical amount in California Superior Court — interest accrues at 10% under CCP § 685.010. Same city, same dollar principal, more than double the annual interest in state court.
How to know which applies: - Read the judgment header: "United States District Court" versus "Superior Court of California, County of ..." - Federal question jurisdiction (copyright, federal statutory claims) → federal rate - Pure state-law claims in state court → state rate - Judgments registered domestically: enforcing a sister-state judgment may use the enforcing state's post-judgment rate under full faith and credit analysis — consult counsel
Consumer contract overlay in California: CCP § 685.010 also caps certain pre-judgment consumer contract rates; post-judgment on money judgments remains 10% for most money judgments. Distinct contract interest terms may apply pre-judgment if the contract specifies a lawful rate.
TheLegalCalc's state calculators apply verified statutory rates for state-court judgments. For federal judgments, select federal rate inputs or use counsel-updated weekly § 1961 figures.
Judgment Interest Rates by State — 2026
The table below summarizes post-judgment interest rates verified against primary statutes as of July 2026. Always confirm amendments before filing motions or collection letters.
| Jurisdiction | Rate | Primary authority | |---|---|---| | Federal courts | ~3.84%–3.92% (weekly Treasury) | 28 U.S.C. § 1961 | | California | 10%/year (fixed) | Cal. Code Civ. Proc. § 685.010 | | New York | 9%/year (mandatory) | N.Y. CPLR § 5004 | | Illinois | 9%/year (9% general; 6% vs local governments) | 735 ILCS 5/2-1303 | | Ohio | 7%/year | Ohio Rev. Code § 1343.03 | | Colorado | 8% contracts / 9% tort judgments | Colo. Rev. Stat. § 5-12-102; § 13-21-101 | | Texas | Greater of 6% or Prime Rate (variable) | Tex. Fin. Code § 304.003; Tex. R. Civ. P. | | Virginia | 6% or contract rate if higher | Va. Code § 8.01-382 | | Florida | Variable (state investments / statutory formula) | Fla. Stat. Ch. 55 (verify current CFO rate) |
California — 10% fixed. CCP § 685.010 sets the rate of interest on money judgments at 10% per annum simple interest. This rate does not float with the Fed. Creditors in California have powerful passive accrual.
New York — 9% mandatory. CPLR § 5004 provides 9% per annum on judgments. New York courts have treated this as mandatory in many contexts — judges cannot simply waive statutory interest because the debtor is sympathetic. Consumer judgments in certain contexts may involve 2% rates — distinguish credit card and consumer debt special rules from ordinary money judgments.
Texas — greater of prime or 6%. Tex. Fin. Code § 304.003 and court rules tie post-judgment interest to a floating rate tied to prime, with a 6% floor. When prime is elevated, Texas judgment interest exceeds 6%.
Illinois — 9% with government exception. 735 ILCS 5/2-1303 sets 9% on most judgments but 6% against local governments — important for municipal defendants.
Ohio — 7%. ORC § 1343.03 specifies 7% per annum on judgments in 2026 materials.
Colorado — split rates. Contract judgments under § 5-12-102 at 8%; tort judgments under § 13-21-101 at 9% unless otherwise specified.
Florida — variable. Florida publishes a judgment interest rate tied to statutory formulas (often based on state investment returns). Check the Florida CFO or clerk guidance for the operative quarterly rate — it is not a single fixed number like California's 10%.
Federal — weekly update. The U.S. courts publish the § 1961 rate based on the most recent one-year Treasury auction. June 2026 figures near 3.84% mean federal judgments grow slowly compared to California state judgments.
Step-by-Step: Calculating What You're Owed
Formula (simple interest):
Interest = Principal × Rate × (Days ÷ 365)
Total owed = Principal + Interest − payments credited
Example 1 — California, $50,000, 3 years at 10%:
Interest = $50,000 × 0.10 × (1,095 ÷ 365) = $50,000 × 0.10 × 3 = $15,000
Total = $65,000 (assuming no partial payments)
Year-by-year growth at 10% simple: - 1 year: $55,000 - 3 years: $65,000 - 5 years: $75,000 - 10 years: $100,000 (principal doubles)
Example 2 — New York, $100,000, 18 months at 9%:
Days ≈ 548 (1.5 years)
Interest = $100,000 × 0.09 × (548 ÷ 365) = $13,504.11
Total ≈ $113,504
Example 3 — Federal, $100,000, 5 years at 3.84%:
Interest = $100,000 × 0.0384 × 5 = $19,200
Total = $119,200 — compare to California state court: $100,000 × 0.10 × 5 = $50,000 interest, $150,000 total. The California creditor is ahead by $30,800 after five years on identical principal.
When to use compound interest: Only when statute or contract requires it. Compound formula:
Interest = Principal × (1 + Rate/365)^Days − Principal
Most judgment interest statutes do not use this form. Do not compound California statutory post-judgment interest unless a specific exception applies.
Using the calculator: Open the [Judgment Interest Calculator](/judgment-interest-calculator/california) for California's 10% rate, or select your state for its verified statutory rate. Enter judgment date, payment date (or "today"), principal, and any partial payments. The tool outputs accrued interest and total balance — bring the printout to collection counsel or settlement negotiations.
For Creditors: Using Interest as Leverage
Unpaid judgments are not static debts. They are growing liabilities that improve a creditor's bargaining position every month.
Settlement pressure. A debtor facing a $75,000 California judgment after five years of 10% accrual on $50,000 principal knows the clock adds $5,000 per year on the original principal alone — plus interest on unpaid interest in some allocation disputes. Creditors legitimately demand payment in full including accrued interest; debtors negotiate discounts against the threat of continued accrual and enforcement.
Abstract of judgment and liens. In California, recording an abstract of judgment creates a lien on real property in the county of recording (CCP § 674). Other states have judgment lien statutes with different durations and priority rules. A judgment lien clouds title and blocks sales and refinances.
Writ of execution. After obtaining a writ, sheriffs may levy bank accounts, garnish wages within state limits, and seize non-exempt assets. Wage garnishment exemptions vary — federal CCPA limits under 15 U.S.C. § 1673 overlay state protections.
Examination of judgment debtor. Many states allow post-judgment discovery of the debtor's finances — bank records, employment, assets. Debtors who ignore judgments often must appear or risk contempt.
Renewal of judgments. California money judgments are enforceable for 10 years and may be renewed before expiration (CCP § 683.110). Creditors who renew preserve the lien and collection pipeline. Letting a judgment lapse without renewal forfeits leverage.
Interest as negotiation currency: Offering to waive accrued interest in exchange for immediate lump-sum payment is a standard collection compromise. Calculate the exact interest first — debtors respect numbers backed by statute.
For Debtors: Why Paying Sooner Saves Money
Ignoring a judgment is among the most expensive financial decisions a debtor can make. Interest accrues automatically; it does not require the creditor to file a separate lawsuit each year.
California cost of delay: $50,000 judgment at 10% simple interest: - Year 1 balance: $55,000 - Year 3: $65,000 - Year 5: $75,000 - Year 10: $100,000
Every year of inaction on a California judgment costs 10% of the original principal in simple interest — before collection costs, attorney fees on enforcement, and credit damage.
Credit reporting. Satisfied judgments may linger on credit reports for years; unpaid judgments trigger ongoing collection activity and potential wage garnishment. A judgment on your record affects housing, employment background checks, and lending.
Negotiating with creditors. Debtors often negotiate lump-sum settlements at a discount on principal while asking for interest waiver. Creditors accept when enforcement costs are uncertain. Propose a specific number with a deadline — "I can pay $42,000 by March 15 if you stipulate to satisfaction of the full $65,000 balance including interest."
Bankruptcy interaction. Chapter 7 bankruptcy may discharge many unsecured money judgments; some debts (fraud, certain taxes, domestic support) survive. Post-petition interest on nondischargeable debts may continue. Chapter 13 plans may cram down certain obligations over three to five years. Filing stays collection but does not erase a recorded lien without avoidance actions where available.
Payment priority: When paying, get a written stipulation that funds apply to principal and interest in a defined order and that the creditor will file a satisfaction of judgment with the court clerk upon receipt.
Pre-Judgment vs Post-Judgment Interest
Post-judgment interest is largely automatic — the statute sets the rate from judgment entry until satisfaction. Creditors need not plead it separately in many states; clerks calculate it on execution.
Pre-judgment interest compensates the winner for being kept out of their money during litigation. Rules vary sharply:
- Contract claims: Many states award pre-judgment interest at the contract rate if the contract specifies a lawful rate, or at statutory default rates if silent. - Tort claims: Pre-judgment interest is often discretionary — trial courts weigh whether the defendant had notice of liability and whether interest is equitable. - New York: CPLR § 5001 governs pre-judgment interest in many actions; 9% rates appear in statutory contexts but application differs from mandatory post-judgment § 5004. - California: Pre-judgment interest on breach of contract may follow contract terms; tort pre-judgment interest is more limited — CCP § 3291 addresses certain personal injury contexts.
Why pre-judgment matters in long cases: A commercial dispute litigated for seven years before verdict can double the effective recovery if pre-judgment interest accrues on the full demand from the filing date. Post-judgment interest then stacks on the judgment amount which may already include pre-judgment interest.
Post-judgment is the collection phase: Once you have a judgment, post-judgment rates apply to the unsatisfied judgment amount. For California creditors, the 10% post-judgment rate is the engine of collection leverage during the years it takes to locate assets.
When using TheLegalCalc, specify whether you are modeling post-judgment accrual (most common use of the judgment interest calculator) or estimating pre-judgment exposure under contract — the latter may require attorney review of contract language.
Calculate Judgment Interest by State
Statutory rates are knowable — you should not guess. TheLegalCalc maintains state-specific judgment interest calculators with rates tied to primary sources:
- [California Judgment Interest Calculator](/judgment-interest-calculator/california) — 10% per year under CCP § 685.010 - [New York Judgment Interest Calculator](/judgment-interest-calculator/new-york) — 9% per year under CPLR § 5004 - [Texas](/judgment-interest-calculator/texas), [Illinois](/judgment-interest-calculator/illinois), [Ohio](/judgment-interest-calculator/ohio), [Virginia](/judgment-interest-calculator/virginia), [Colorado](/judgment-interest-calculator/colorado), and other state pages
Official court resources for verification: - California courts: [courts.ca.gov](https://www.courts.ca.gov/) — forms, fee schedules, and judgment enforcement guides - New York courts: [nycourts.gov](https://www.nycourts.gov/) — civil judgment and enforcement procedures - Federal § 1961 rates: U.S. Courts website — weekly post-judgment interest rate table
Before relying on any rate in court filings: Confirm the current statute, any consumer-debt exceptions, and whether your judgment is federal or state. Federal rates change weekly; Florida's variable rate changes quarterly. The calculator provides planning estimates; clerks and opposing counsel will dispute miscalculated interest.
Enter your judgment amount, date entered, and payments made. The output shows accrued interest to today and projected balances — the starting point for writs, settlement letters, and satisfaction negotiations.
Interest rates cited are based on statutes verified as of July 2026. Federal rates change weekly. State statutory rates may be amended by legislation. This calculator provides estimates for planning purposes. Consult an attorney or verify current rates with your state court before relying on any rate for legal proceedings.
Calculate judgment interest for your state
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Frequently asked questions
California post-judgment interest on money judgments is 10% per year simple interest under Cal. Code Civ. Proc. § 685.010. This rate is fixed by statute and does not vary with Federal Reserve policy. On a $50,000 unsatisfied judgment, interest accrues at approximately $5,000 per year until the judgment is satisfied. Consumer contract contexts may involve different pre-judgment rate caps, but the standard post-judgment money judgment rate remains 10%.
Most states use simple interest: Interest = Principal × Annual Rate × (Days ÷ 365). The principal is typically the unsatisfied judgment amount. Interest usually begins on the date the judgment is entered on the court docket and runs until full payment. Partial payments reduce the balance; interest continues on the remainder. Use TheLegalCalc's judgment interest calculator to apply your state's statutory rate and exact day count.
The majority of U.S. state post-judgment interest statutes, including California (CCP § 685.010) and New York (CPLR § 5004), use simple annual interest on the unpaid principal. Federal post-judgment interest under 28 U.S.C. § 1961 is also computed as simple interest tied to weekly Treasury yields. Compound interest applies only where a contract or specific statute explicitly requires compounding — uncommon for standard money judgments.
Federal district court judgments accrue interest under 28 U.S.C. § 1961 at a rate equal to the weekly average one-year Treasury constant maturity yield for the calendar week preceding the date of judgment, with adjustments for weeks after judgment. In June 2026, that rate has been approximately 3.84%–3.92%. The rate is updated weekly by the federal courts — it is substantially lower than California's 10% state rate for state-court judgments.
A judgment earns post-judgment interest from the date of entry until the judgment is satisfied in full (or vacated on appeal). In California, judgments are enforceable for 10 years and may be renewed before expiration under CCP § 683.110, extending the collection period and continued interest accrual if properly renewed. Letting a judgment expire without renewal can end enforceability — consult counsel before the enforcement window closes.
Related reading
- Ohio Late Fees 2026: Rent Rules, Contract Caps, and the 7% Judgment Rate
Ohio landlords face no statutory late-fee cap but courts enforce reasonableness. Contract interest caps at 8% under O.R.C. § 1343.01. The 2026 judgment interest rate is 7% under O.R.C. § 1343.03. Daily late fees are prohibited.
- How Wage Garnishment Works (2026)
Federal cap: lesser of 25% of disposable earnings or the amount above 30× the federal minimum wage (15 U.S.C. § 1673). Some states add stronger protections. Free 2026 guide.
- How to File a Small Claims Court Case (2026 Guide)
Dollar limits often range roughly $3,000–$25,000 depending on state and plaintiff type; judgment interest post-win varies by statute. Check your cap before filing. Free 2026 guide.