Arizona Post Judgment Interest Rate
The Statutory Formula
Post-judgment interest in Arizona accrues automatically on every money judgment from the date the court enters it until the day it's paid in full. You don't need to ask the court for it — it's yours by statute.
Under A.R.S. § 44-1201(B), the rate is the lesser of:
- 10% per annum, or
- 1% plus the prime rate as published by the Federal Reserve Board of Governors on the date the judgment was entered
So if the prime rate is 7.5% when your judgment is entered, your interest rate is 8.5% (7.5% + 1%), because that's lower than the 10% cap. If the prime rate were 9.5%, the rate would be capped at 10%.
The rate locks in on the day of judgment entry and does not change if the prime rate moves later. Check the Federal Reserve's prime rate for the specific date your judgment was entered.
Simple Interest Only
Arizona post-judgment interest is calculated as simple interest based on a 365-day year. Compound interest is legally prohibited unless the original contract between the parties specifically provided for it and the court expressly awarded compound interest in the judgment order (A.R.S. § 44-1201).
For a $3,500 judgment at 8.5% simple interest:
- Annual interest: $3,500 × 0.085 = $297.50
- Daily interest: $297.50 ÷ 365 = $0.815
- Monthly (approximate): $0.815 × 30 = $24.45
Over a year of non-payment, you're owed an extra $297.50 on top of the original judgment. Over five years, that's $1,487.50 in accrued interest.
How Partial Payments Are Allocated
When you receive partial payments through garnishment or voluntary remittance, Arizona applies them in a strict statutory order:
- Accrued post-judgment interest first
- Recoverable post-judgment court costs and process fees second
- Remaining principal balance last
This matters for your accounting. If you've accumulated $200 in interest and $150 in court costs, a $500 garnishment payment reduces your principal by only $150 ($500 − $200 − $150). Interest continues to accrue on the remaining principal balance.
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What Counts as Recoverable Costs
Not every expense you incur collecting a judgment can be added to the balance. Only certain costs are recoverable:
Recoverable: Court filing fees (garnishment applications, transcript fees), constable and process server fees, statutory publication costs for execution sales, and officer execution deposits.
Not recoverable: Private collection agency commissions, your personal time, mileage to the courthouse, research costs, guide purchases, or attorney fees unless specifically awarded by the court.
To recover eligible costs, you submit a verified Statement of Costs to the court or include them in the continuing garnishment balance.
Track It From Day One
Start an interest ledger the day the judgment is entered. Record the entry date, the locked-in prime rate, your calculated interest rate, and every partial payment as it comes in — with the allocation breakdown.
This matters for two reasons. First, when you eventually file a garnishment application or debtor exam petition, you need to state the current total owed — principal plus accrued interest plus costs. An inaccurate number can delay your filing. Second, when the judgment is fully paid, you need to know the exact payoff amount before filing your Satisfaction of Judgment.
Get the complete Arizona judgment collection guide with a pre-built interest calculator and payment tracking worksheet that handles the allocation math for you.
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