Statutory Interest Calculator - Texas

Texas uses different rates for different contexts. Tex. Fin. Code § 302.002 sets six percent (6%) per year as the general legal interest rate when no other rate applies. Tex. Fin. Code § 304.002 limits application to the lesser of the contract rate or eighteen percent (18%) per year when a contract rate exists. For judgments without a contract rate, Tex. Fin. Code § 304.003 follows OCCC-published rates between five percent (5%) and fifteen percent (15%); the verified rate for January through May 2026 is six point seven five percent (6.75%) per year on the March 18, 2026 historical table. Tort prejudgment interest under § 304.103 tracks the Federal Reserve prime rate after statutory notice. Identify which statute governs before quoting one number in 2026.

The start date depends on the statute. General legal interest under Tex. Fin. Code § 302.002 typically accrues from when the underlying obligation becomes due unless another rule applies. Tort prejudgment interest under Tex. Fin. Code § 304.103 generally does not begin until one hundred eighty (180) days after the defendant receives written notice of the claim and amount. Post-judgment interest under § 304.003 is tied to the rendered judgment and the OCCC rate month on occc.texas.gov. Contract prejudgment interest may run from default under the agreement subject to the § 304.002 eighteen percent cap. Build a timeline of invoice due dates, notice letters, rendition, and partial payments before demanding interest in justice or district court.

A written contract rate controls when enforceable, but Tex. Fin. Code § 304.002 caps prejudgment and post-judgment statutory application at the lesser of the contract rate or eighteen percent (18%) per year. If your note says twenty-four percent, statutory application may be limited to eighteen percent unless another exemption applies. When the contract is silent, Tex. Fin. Code § 302.002 provides six percent (6%) per year as the general legal rate—not the OCCC § 304.003 judgment rate, which applies to judgments without a contract rate. Confusing § 302.002 with § 304.003 is a common error in demand letters. Read the Finance Code section that matches your pre-suit, contract, or post-judgment phase.

Texas Finance Code provisions—including § 302.002, § 304.002, § 304.003, and § 304.103—describe annual rates applied to principal in routine statutory and judgment interest analysis without mandating compounding of interest on interest. Contracts may provide compound interest if lawful; courts apply agreed terms subject to usury and commercial loan exemptions. This calculator uses simple interest only: principal times rate times years. For partial months, practitioners often use daily accrual at the verified six point seven five percent OCCC rate or the six percent § 302.002 rate as appropriate. Do not capitalize interest into principal without contractual or court authority. Verify with Texas counsel before filing a prejudgment interest claim.

Pre-judgment interest compensates for delay before judgment—six percent (6%) under Tex. Fin. Code § 302.002 when no other rate applies, contract rates capped at eighteen percent (18%) under § 304.002, and tort prime-based rates under § 304.103 after one hundred eighty days from written notice. Post-judgment interest on judgments without a contract rate follows Tex. Fin. Code § 304.003 and OCCC publications, such as six point seven five percent (6.75%) for January through May 2026. The statutes, caps, and start dates differ. A pre-suit demand citing § 302.002 should not automatically use the § 304.003 OCCC table unless you are post-judgment. Segment calculations by phase and rendition month.

Use simple interest: Interest equals principal times annual rate times years. At six point seven five percent (6.75%) under Tex. Fin. Code § 304.003 for early 2026, twenty-five thousand dollars ($25,000) for eighteen months equals two thousand five hundred thirty-one dollars and twenty-five cents ($2,531.25). At six percent (6%) under § 302.002, the same inputs equal two thousand two hundred fifty dollars ($2,250). Contract rates above eighteen percent are treated as eighteen percent under § 304.002 unless exempt. Download the OCCC row for your judgment month at occc.texas.gov when § 304.003 applies. TheLegalCalc multiplies the inputs you provide. Confirm notice dates for § 304.103 tort claims with a Texas attorney.