Prejudgment Interest Rate Calculator Ontario

Calculate prejudgment interest rates in Ontario with our free prejudgment interest rate calculator. This tool helps you determine the prejudgment interest that may apply to your legal case in Ontario, based on the Ontario Courts of Justice Act.

How to Use This Calculator

To calculate prejudgment interest in Ontario, you'll need to provide the following information:

The original amount of the claim
The date when the claim was made
The date when the judgment was entered
The applicable interest rate (typically 6% per annum under the Ontario Courts of Justice Act)

Enter these values into the calculator on the right and click "Calculate" to determine the prejudgment interest owed.

Formula Used

The prejudgment interest is calculated using the following formula:

Prejudgment Interest = Principal × Rate × Time

Where:

Principal is the original amount of the claim
Rate is the daily interest rate (annual rate divided by 365)
Time is the number of days between the claim date and judgment date

The Ontario Courts of Justice Act provides for prejudgment interest at a rate of 6% per annum, compounded daily.

Assumptions

This calculator makes the following assumptions:

The standard prejudgment interest rate in Ontario is 6% per annum
Interest is compounded daily
The calculation is based on the Ontario Courts of Justice Act
All dates are business days (weekends and holidays are excluded)

Note: The actual interest rate may vary depending on the specific circumstances of your case. This calculator provides an estimate based on standard legal practices in Ontario.

Worked Example

Let's calculate prejudgment interest for a claim of $10,000 made on January 1, 2023, with judgment entered on June 1, 2023.

Description	Value
Principal Amount	$10,000
Claim Date	January 1, 2023
Judgment Date	June 1, 2023
Number of Days	151 days
Daily Interest Rate	6% ÷ 365 ≈ 0.01644%
Prejudgment Interest	$10,000 × 0.01644 × 151 ≈ $246.60

In this example, the prejudgment interest would be approximately $246.60.

Interpreting Results

The prejudgment interest calculated by this tool represents the amount that may be owed to the claimant from the date of the claim until the date of judgment. This amount should be considered when determining the total recovery in your case.

It's important to note that:

The interest rate may vary based on the specific terms of your case
Holidays and weekends are excluded from the interest calculation
The actual amount may be adjusted by a court if there are special circumstances

FAQ

What is prejudgment interest in Ontario?

Prejudgment interest is the interest that accrues on a claim from the date the claim is made until the date of judgment. In Ontario, this is typically calculated at 6% per annum under the Ontario Courts of Justice Act.

How is prejudgment interest calculated in Ontario?

Prejudgment interest is calculated using the simple interest formula: Interest = Principal × Rate × Time. The rate is typically 6% per annum, compounded daily, and the time is the number of days between the claim date and judgment date.

What is the standard prejudgment interest rate in Ontario?

The standard prejudgment interest rate in Ontario is 6% per annum, as provided by the Ontario Courts of Justice Act.

Are weekends and holidays included in the interest calculation?

No, weekends and holidays are excluded from the interest calculation in Ontario. The interest is calculated based on business days only.

Can the prejudgment interest rate be different in my case?

Yes, the prejudgment interest rate may vary based on the specific circumstances of your case. This calculator provides an estimate based on standard legal practices in Ontario.