How do I calculate the amount of interest owed on a small claims court judgment?

In Indiana, the Small Claims Court is designed to help resolve disputes without the need for a lawyer. One potential consequence of a Small Claims Court judgment is the payment of interest. To calculate the interest owed on a small claims court judgment, you will need to know the principal amount of the judgment, the interest rate, and the amount of time that has passed since the judgment was entered. The interest rate is set by statute and is currently 4.5% for Indiana Small Claims Court judgments. To calculate the amount of interest owed on a judgment, you must first determine the total amount of the principal, which is the total amount the court ruled that a defendant must pay the plaintiff. Then, multiply the principal by the interest rate to get the interest owed. For example, if the principal owed is $1,000 and the interest rate is 4.5%, the interest owed would be $45. Next, you must calculate the amount of time that has passed since the judgment was entered. To do this, you must find the date of the judgment and the current date. Subtract the date of the judgment from the current date to determine the number of months between them. For example, if the judgment was entered on November 1, 2020, and today is February 1, 2021, the number of months between them would be three. Finally, multiply the interest owed by the number of months that have passed since the judgment was entered. In this example, the interest due would be three times the original interest, or $135. This is the total interest owed on the judgment.

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How do I calculate the amount of interest owed on a small claims court judgment?

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