Judgment Interest Calculator - Texas

Texas does not use one static percentage for all of 2026. Under Tex. Fin. Code § 304.003, post-judgment interest for judgments without a contract rate follows rates published by the Office of Consumer Credit Commissioner based on the Federal Reserve prime rate, with a five percent floor and fifteen percent ceiling under § 304.003(b). The OCCC Historical Table (revision March 18, 2026) lists six point seven five percent (6.75%) per year for judgments rendered from January through May 2026. Rates for later 2026 months must be taken from the same official table at occc.texas.gov/publications/interest-rates for the rendition month. Always match the table to your judgment date rather than assuming a national default.

Use simple interest unless a court order requires otherwise: Interest = Principal × Annual Rate × Years. For the verified six point seven five percent rate published for January through May 2026 under Tex. Fin. Code § 304.003, fifty thousand dollars for two years equals six thousand seven hundred fifty dollars in interest ($50,000 × 0.0675 × 2). Partial periods may be modeled daily as (Principal × 6.75%) ÷ 365. Partial payments reduce the principal base going forward. Costs awarded in the judgment and prejudgment interest may have separate rules. Because the OCCC rate can change for later 2026 rendition months, download the row for your exact month at occc.texas.gov/publications/interest-rates. TheLegalCalc's calculator multiplies principal, rate, and years with simple interest only.

Texas collection practice ties post-judgment interest to the rendered money judgment while principal remains unpaid after the court signs judgment. The OCCC rate selection depends on the calendar month of rendition under Tex. Fin. Code § 304.003, so the start of interest accrual and the rate determination month are related but not identical concepts. Pre-judgment interest, if awarded, is a separate damages item listed on the judgment or order. Confirm the judgment date on the signed order and match it to the OCCC historical table row at occc.texas.gov/publications/interest-rates. Partial satisfaction dates stop interest on the paid portion of principal prospectively unless the order states otherwise. Keep a copy of the docket sheet showing rendition for enforcement planning.

Tex. Fin. Code § 304.003 establishes the rate framework for many judgments without a contract rate; it does not describe compounding interest on interest in routine post-judgment accrual. Enforcement practice typically applies the published simple annual rate, such as six point seven five percent for January through May 2026, to unpaid principal only. Compounding could appear only through contract, agreed order, or specialized accounting. This calculator uses simple interest and does not capitalize accrued interest each period. For writs and garnishments, verify the judgment balance and OCCC rate month on occc.texas.gov/publications/interest-rates with Texas counsel before filing.

Interest under chapter 304 can accrue while principal is unpaid, but Tex. Civ. Prac. & Rem. Code § 34.001 limits execution: a judgment becomes dormant if a writ of execution is not issued within ten years after rendition, with revival rules for dormant judgments within statutory time limits. Interest math does not override dormancy. Track writ deadlines separately from OCCC rate lookup. Renewed execution strategy should be planned with an attorney. Even at six point seven five percent, long delays in enforcement can yield zero collection if execution rights expire.

Parties may settle judgment debt and agree to reduce or waive post-judgment interest if they have authority and the agreement is enforceable. Contracts may specify different prejudgment or post-judgment rates that interact with chapter 304. Bankruptcy stays and satisfaction of judgment affect collection. Settlements should state whether interest under Tex. Fin. Code § 304.003 stops on the payment date, which OCCC rate month governed the claim, and whether the release covers costs and attorney fees. Creditors sometimes trade a lump sum for a full release of interest accrued at six point seven five percent or another published rate. This tool does not provide legal advice. Consult a Texas attorney before signing a release or crediting a partial payment.