Arkansas Post-Judgment Interest Rate: How to Calculate What You're Owed
Every unpaid Arkansas judgment accrues interest automatically. You don't need to file anything extra or get court approval — the interest is yours by law from the day the judgment is entered.
Here's how it works and how to calculate exactly what the debtor owes.
The Default Rate: Federal Reserve Primary Credit Rate + 2 Points
Under A.C.A. § 16-65-114(a), post-judgment interest on a non-contract judgment is the Federal Reserve primary credit rate in effect on the date the judgment is entered, plus 2 percentage points, subject to the maximum rate allowed by Arkansas Constitution Amendment 89. For a contract judgment, the rate is the greater of the contract rate or that formula, subject to the same cap.
Simple interest means no compounding. You calculate interest only on the unpaid principal — not on previously accrued interest.
The Formula
$$\text{Interest} = \text{Unpaid Principal} \times r \times \frac{\text{Days Since Entry}}{365}$$
Here, $r$ is the applicable post-judgment rate for that judgment, expressed as a decimal.
Example: For a judgment entered on January 15, 2026, the Federal Reserve primary credit rate was 3.75%, making the post-judgment rate 5.75%. By July 15 (181 days later), a $3,500 judgment accrues:
$3,500 × 0.0575 × (181 ÷ 365) = $99.80 in interest
Total owed: $3,599.80 plus any authorized court costs you advanced.
When the Contract Rate Applies
If your lawsuit was based on a written contract that specified a lawful interest rate — say, a promissory note at 8% or a service agreement at 12% — post-judgment interest accrues at the greater of the contract rate or the statutory formula above. The contract rate cannot exceed Arkansas's maximum constitutional usury limit.
For a judgment not based on a contract, the statutory formula above applies.
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Tracking the Full Balance
Post-judgment interest is just one piece. The total the debtor owes at any point is:
| Component | What It Is |
|---|---|
| Unpaid principal | The original judgment amount minus any payments received |
| Post-judgment interest | Simple interest at the rate set under A.C.A. § 16-65-114 on the unpaid principal |
| Court costs | Authorized fees you advance — writ fees ($10 each), sheriff service ($50–$120), certified mail, recording fees |
All three components must be paid before you file a satisfaction of judgment. If the debtor offers to pay the principal and claims "that's all I owe," they're wrong — interest and costs are part of the legally enforceable debt.
Interest on Partial Payments
When the debtor makes partial payments (through garnishment or voluntarily), record each payment with its date and amount, and keep the unpaid principal, accrued interest, authorized costs, and payments current in your ledger.
Keep a running ledger with dates and amounts. The court may ask for this accounting if there's a dispute.
The Long Game
At 5.75% simple interest — the rate for a judgment entered on January 15, 2026 — an unpaid judgment grows as follows:
| Original Judgment | After 1 Year | After 5 Years | After 10 Years |
|---|---|---|---|
| $1,000 | $1,057.50 | $1,287.50 | $1,575 |
| $3,000 | $3,172.50 | $3,862.50 | $4,725 |
| $5,000 | $5,287.50 | $6,437.50 | $7,875 |
The rate is based on the Federal Reserve primary credit rate on the judgment's entry date; contract judgments use the higher of the contract rate or the statutory formula, subject to the constitutional cap.
This is why judgment duration and renewal matters. A $5,000 judgment doubles over the 10-year enforcement window if the debtor never pays.
The Collecting a Small Claims Judgment in Arkansas guide includes a balance ledger template that tracks principal, interest, costs, and payments in one place.
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