Judgment Interest Calculator
Estimate how interest accrues on a judgment over time. This educational tool helps you understand compound interest growth based on principal amount, interest rate, and time period.
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Understanding Judgment Interest
How It Works
Judgment interest typically compounds annually, meaning interest accrues on both the original principal and previously accumulated interest. This causes the total amount owed to grow exponentially over time.
State Variations
Interest rates on judgments vary by state and can range from 3% to 12% or more. Some states use simple interest while others use compound interest. Always verify your state's specific rules.
Why This Matters
Understanding interest growth helps both collectors and debtors make informed decisions about settlement timing, payment plans, and negotiation strategies. Time significantly impacts the total amount.
Strategic Use
Use this calculator to estimate future balances, compare settlement scenarios, and understand the cost of delayed resolution. It's a planning tool, not legal advice.
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