When you obtain a Florida judgment, you will normally be granted post-judgment interest based upon Florida’s statutory rate, unless there is a contract stating otherwise.
The rules regarding calculating statutory interest are contained in section 55.03, Florida Statutes, and can be somewhat confusing since the interest rate will now change over time for judgments entered on July 1, 2011 or later.
Initial Interest Rate
When your judgment is initially entered, your interest rate is determined by the existing quarterly rate as established by Florida’s Chief Financial Officer, which rates are listed here: https://www.myfloridacfo.com/division/aa/local-governments/judgement-interest-rates.
For example, if you obtained a judgment on August 2, 2019, then your initial interest rate would be 6.77% since that was the quarterly interest rate for that period beginning July 1, 2019.
Adjusted Interest Rate
In the past, your statutory interest rate on your judgment would remain constant for the life of the judgment, but this is no longer the case due to an amendment to the statute in 2011. For judgments entered on July 1, 2011 or later, the amendment applies and your interest rate will get adjusted.
Now, your interest rate will be adjusted annually based on the statutory rate that is effective on January 1st of the following year.
This is stated in section 55.03(3), Florida Statutes:
“(3) The interest rate is established at the time a judgment is obtained and such interest rate shall be adjusted annually on January 1 of each year in accordance with the interest rate in effect on that date as set by the Chief Financial Officer until the judgment is paid…..”
In my example where your judgment was obtained on August 2, 2019, your initial interest rate was 6.77% until the end of the year, but beginning on January 1, 2020, your interest rate now becomes 6.83%. Then, on January 1, 2021, your interest rate will adjust again for that year to the existing interest rate, and so forth.
How to calculate total interest on your Florida judgment
If you’re trying to do the calculations, I’ve actually put together a Florida judgment statutory interest calculator to make this even easier. Note: my calculator does not yet take into account any partial payments made.
However, if you want to run the calculations manually, I’ll discuss how I normally do it. Keep in mind that in my opinion, there’s some uncertainties in the law on the proper way to do it.
For example,
– Florida’s Chief Financial Officer lists a “Daily Rate as a Decimal” that is rounded now to 9 decimal places resulting in very minor discrepancies when using that number versus the “Rate per Annum.” I personally use the “Daily Rate as a Decimal” since that is what is listed and the discrepancies are so small.
– The statute does not discuss if you should round numbers, but I only round at the very end for the total interest.
Hypothetical Judgment Example
Let’s assume the judgment was $10,000.00 and entered on August 2, 2019, and you want to calculate the judgment interest through May 30, 2025. I’ve been told by an accountant that interest normally accrues on a daily basis, so let’s assume I am running the calculations on May 31, 2025.
For each year, I use the formula: (Amount of judgment) x (Daily Rate as a Decimal) x (Number of Days of Interest).
Interest in 2019
For 2019, you would use the quarterly interest rate at the time the judgment was entered (quarter starting July 1, 2019), which is 6.33%. As mentioned, I would use the listed “Daily Rate as a Decimal” for your calculations, which is .000185479.
From August 2, 2019 through December 31, 2019, there were 152 days of interest. Since interest accrues upon entry of the judgment, the first day (August 2) should be included in the number of days. You can use this day duration tool. The tool does not automatically include the end date in the calculation, so you can choose this option if it applies in your case.
When you multiply $10,000.00 (Amount of Judgment) x .000185479 (Daily Rate as Decimal) X 152 (number of days), you get total interest in 2019 of $281.92808. I personally use this full number in the calculations without rounding, but I do display the rounded number on my calculator results.
Interest in 2020
For 2020, the interest rate is the quarterly rate as of January 1, 2020, which is 6.83% (.000186612 is “Daily Rate as a Decimal”) since the interest now adjusts annually under the statute.
From January 1, 2020 through December 31, 2020, there were 366 days since a leap year.
When you multiply $10,000.00 X .000186612 X 366, you get total interest in 2020 of $682.99992.
Interest in 2021
For 2021, the interest rate is the quarterly rate as of January 1, 2021, which is 4.81% (.000131781 is “Daily Rate as a Decimal”).
From January 1, 2021 through December 31, 2021, there were 365 days.
When you multiply $10,000.00 X .000131781 X 365, you get total interest in 2021 of $481.00065.
Interest in 2022
For 2022, the interest rate is the quarterly rate as of January 1, 2022, which is 4.25% (.000116438 is “Daily Rate as a Decimal”).
From January 1, 2022 through December 31, 2022, there were 365 days.
When you multiply $10,000.00 X .000116438 X 365, you get total interest in 2022 of $424.9987.
Interest in 2023
For 2023, the interest rate is the quarterly rate as of January 1, 2023, which is 5.52% (.000151233 is “Daily Rate as a Decimal”).
From January 1, 2023 through December 31, 2023, there were 365 days.
When you multiply $10,000.00 X .000151233 X 365, you get total interest in 2023 of $552.00045.
Interest in 2024
For 2024, the interest rate is the quarterly rate as of January 1, 2024, which is 9.09% (.000248361 is “Daily Rate as a Decimal”).
From January 1, 2024 through December 31, 2024, there were 366 days.
When you multiply $10,000.00 X .000248361 X 366, you get total interest in 2024 of $909.00126.
Interest in 2025
For 2025, the interest rate is the quarterly rate as of January 1, 2025, which is 9.38% (.000256986 is “Daily Rate as a Decimal”).
From January 1, 2025 through May 30, 2025 (the date of this article), there were 150 days. As mentioned earlier, let’s assume that I’m running the calculations on May 31 since I’ve been told by an accountant that interest accrues on a daily basis.
When you multiply $10,000.00 X .000256986 X 150, you get total interest in 2025 of $385.479.
Total Interest
Therefore, the total accrued interest equals $3,717.40806, which at this point I do round up to $3,717.41, although the statute is silent on this point.
Summary
To calculate the statutory interest on your Florida judgment under section 55.03(3), Florida Statutes, keep in mind that your initial rate will be adjusted annually based on the statutory rate that is effective on January 1st of the following year.
You will want to refer to the website for the Chief Financial Officer of Florida to keep track of the correct interest rate.
While I preferred the old method, this article should hopefully help you determine the total interest owed under the new changes.
I suggest expanding the calculation section showing how to calculate based on the debtor repaying at a fixed or arbitrary rate. E.G.: Debtor pays off $500 on June 21st 2016 and then $200 40 days later and etc. How is the interest calculated then?
Hi, let me check into this. Good feedback. I believe I know how to calculate, but looking for case law to support.
Hi, I have researched the issue and I believe I have the answer, but cannot find a case directly on point with judgments. The common law rule that applies to debts should also apply to judgments since it is a debt:
“When partial payments are made, the rule, with respect to interest, is to apply the payment in the first place to the discharge of the interest due at the time of payment. If the payment exceeds the interest, the surplus must be applied to the discharge of the principal, and interest is then to be computed on the balance of the principal remaining due.” Hart v. Dorman, 2 Fla. 445, 445 (Fla. 1849) citing to Story v. Livingston, 38 U.S.(13 Pet.) 359, 10 L.Ed. 200 (1839).
The calculations could get quite complex if the debtor continues to lower the debt with partial payments, which would result in different amounts of interest accruing at different times.
I have found some exceptions with this calculation as far as child support payments, but otherwise this should apply to regular judgments.
Calculations are payments applied to the interest first, the principle, or to the total balance? Does the interest accrue yearly, monthly, or daily?
As far as where to apply payments, I previously researched this. There wasn’t a case directly on point, but here’s what the case law says on how deal with payment of debts in general (which should also apply to judgments):
“When partial payments are made, the rule, with respect to interest, is to apply the payment in the first place to the discharge of the interest due at the time of payment. If the payment exceeds the interest, the surplus must be applied to the discharge of the principal, and interest is then to be computed on the balance of the principal remaining due.” Hart v. Dorman, 2 Fla. 445, 445 (Fla. 1849) citing to Story v. Livingston, 38 U.S.(13 Pet.) 359, 10 L.Ed. 200 (1839).
While the interest rate is annual, the amount of interest accrues daily on the judgment amount. This chart gives the daily formula as well: https://www.myfloridacfo.com/division/aa/localgovernments/current.htm
Thank you for this article! Our property was “taken” in mid 2020 by a govt entity that didn’t pay us just compensation for that taking, (eminent domain). When we settle this with them, I assume that they will owe us interest since mid 2020. It is now early 2024. The current interest rate is 9.09%. Is that what they have to pay for all 3.5 years? Or, does each year, or even each quarter get calculated since 2020? And does it accrue? So, lets say on $100,000, if the first year was $109,090 because of the interest, do we add 9.09% to the second number? Thank you!
Unfortunately, I do not deal with eminent domain proceedings. But assuming that prejudgment interest applied, each year gets calculated based on the interest rate that would have applied. Judgments are normally simple interest, so you do not calculate interest on the interest. However, if you are settling a matter, the parties can agree to whatever amounts they want.