utility
Legal Interest Calculator: Understand Interest on Delayed Payments
More Than Just the Principal
When a payment is delayed, the creditor loses the opportunity to use that money. To compensate for this loss, legal systems allow for “Legal Interest” or “Pre-judgment Interest.” Calculating this manually can be a headache due to varying rates and fluctuating legal standards. The Ahoxy Legal Interest Calculator automates this process, providing you with a clear breakdown for your legal demand or settlements.
Key Concepts in Legal Interest:
- Statutory Interest Rates: These are the default rates set by the government (often between 5% and 8% annually) that apply when a contract doesn’t specify an interest rate for late payments.
- Pre-judgment vs. Post-judgment: Pre-judgment interest covers the period from the day the debt was due until the court’s decision. Post-judgment interest applies from the ruling until the actual payment.
- Simple vs. Compound: Most statutory interest is calculated as “Simple Interest,” meaning you don’t earn interest on interest unless specifically mentioned in a contract.
When to use this tool:
- Personal Debt Recovery: Calculating the extra amount a friend or family member owes for a long-overdue loan.
- Business Disputes: Determining the potential interest for unpaid invoices before sending a formal demand letter.
- Small Claims Court: Providing the judge with a precise calculation of the interest portion of your claim.
Why use Ahoxy?
Legal math should be exact. Our tool accounts for the specific number of days between two dates and allows you to toggle between different standard statutory rates, ensuring your claim stands up to scrutiny.
Get the facts on what you’re owed. Use the Ahoxy Legal Interest Calculator today!