Post Judgement Interest Calculator Ontario
'/%3E%3Ccircle cx='48' cy='39' r='19' fill='%23f2c9a5'/%3E%3Cpath d='M27 35c3-16 39-17 42 2-8-8-27-9-42-2z' fill='%23374151'/%3E%3Cpath d='M21 86c5-24 49-28 56 0z' fill='%232563eb'/%3E%3Ccircle cx='41' cy='41' r='2' fill='%23111827'/%3E%3Ccircle cx='55' cy='41' r='2' fill='%23111827'/%3E%3Cpath d='M42 52c4 3 9 3 13 0' stroke='%2392400e' stroke-width='3' fill='none' stroke-linecap='round'/%3E%3C/svg%3E)
Reviewed by Calculator Editorial Team
When a court judgment is entered in Ontario, post-judgement interest may accrue on the outstanding amount. This calculator helps you determine how much interest will accumulate over time based on the judgment amount, interest rate, and time period.
How to Use This Calculator
To calculate post-judgement interest in Ontario:
- Enter the judgment amount in Canadian dollars (CAD).
- Select the applicable interest rate (typically 6% for most cases).
- Enter the number of days the interest will accrue.
- Click "Calculate" to see the total interest amount.
The calculator will display the total interest owed and show a breakdown of how the interest is calculated.
How Post Judgement Interest Works in Ontario
Post-judgement interest is a legal mechanism to compensate parties for the delay in receiving payment after a court judgment has been entered. In Ontario, interest typically accrues at a rate of 6% per annum on the judgment amount from the date of judgment until payment is made.
The interest is calculated daily and is compounded annually. This means the interest is calculated on the principal amount plus any previously accrued interest.
Note: The interest rate may vary depending on the type of judgment and specific circumstances. Always verify the applicable rate with legal counsel or the Ontario Court of Justice.
The Formula
The post-judgement interest is calculated using the following formula:
Interest = Principal × (Rate × Time)
- Principal - The judgment amount
- Rate - The daily interest rate (annual rate divided by 365)
- Time - The number of days the interest accrues
For example, if the judgment amount is $10,000, the annual interest rate is 6%, and the interest accrues for 90 days:
Daily Rate = 6% ÷ 365 ≈ 0.016438%
Interest = $10,000 × (0.016438% × 90) ≈ $14.79
Worked Example
Let's calculate the post-judgement interest for a judgment of $5,000 with a 6% annual rate over 180 days.
- Convert the annual rate to a daily rate: 6% ÷ 365 ≈ 0.016438%
- Multiply the judgment amount by the daily rate: $5,000 × 0.016438% ≈ $8.22
- Multiply by the number of days: $8.22 × 180 ≈ $1,479.60
The total post-judgement interest for this example is approximately $1,479.60.
Frequently Asked Questions
What is the standard post-judgement interest rate in Ontario?
The standard post-judgement interest rate in Ontario is typically 6% per annum. However, this rate may vary depending on the type of judgment and specific circumstances.
How is post-judgement interest calculated in Ontario?
Post-judgement interest is calculated daily on the judgment amount using the applicable interest rate. The interest is compounded annually, meaning it is calculated on the principal amount plus any previously accrued interest.
Can post-judgement interest be waived in Ontario?
In most cases, post-judgement interest cannot be waived. It is a legal right of the party entitled to payment under the judgment. However, the court may order a different interest rate if there are exceptional circumstances.
What happens if the judgment amount is paid before the interest accrues?
If the judgment amount is paid before the interest accrues, the party paying the amount is not entitled to recover the interest. The interest is only payable if the judgment amount remains unpaid.