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

In Maryland, calculating the amount of interest owed on a small claims court judgment is relatively simple. The state of Maryland has established that the legal rate of interest is 5.00% per annum (calculated annually). This means that the interest owed on a small claims judgment is computed as the total amount of the judgment multiplied by 5%, divided by 12 (to get the monthly rate) and then multiplied by the number of months since the judgment was entered. For example, if a small claims court judgment for $1000 is entered on January 15th, the interest due as of November 15th would be $50. To calculate this, we multiply $1000 x 5% = $50, then divide that by 12 for the monthly rate ($50/12 = $4.17). Then, we multiply that monthly rate ($4.17) by the number of months elapsed since the judgment was entered (in this case 10 months, from January 15th to November 15th). So our calculation would be $4.17 x 10 = $41.70. Finally, we add that interest calculation ($41.70) to the total amount of the judgment ($1000), for a total of $1041.70. It is important to remember that the legal rate of interest in Maryland is 5.00% and that it is calculated annually. If you are calculating the amount of interest owed on a small claims court judgment, you can follow the steps outlined above to ensure that you have computed the correct amount.

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

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