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

Interest may be awarded on judgments in California small claims court. The amount of interest owed can be calculated by the court at the rate of either 10% or the legal rate of interest, whichever is less. To calculate 10%, use the simple interest formula: interest = principal amount x rate of interest x number of years. The principal amount is the amount of the judgment. The rate of interest is .10, and the number of years is the number of years applicable since the date of the judgment. For the legal rate of interest, which is determined by state law, the calculation will be slightly different. The formula for legal rate of interest is: Current Judicial Council Rate + 2.5%. Find the current Judicial Council Rate on the California Courts website, and add 2.5%. Then use the same formula as above for 10% interest. If a debtor has not been paying up and there is a judgment in small claims court, the court may award interest of up to 10% or the legal rate of interest as interest on the judgment amount. This helps to compensate the creditor for the money owed that has not been paid. Calculating the amount of interest owed is relatively straightforward and can be done using one of the formulas provided.

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

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