CCJ Interest Calculator: Post-Judgment Interest Rate and How to Calculate It

Your CCJ went unpaid and the debt is growing — but by exactly how much? Post-judgment interest is not automatic on every County Court Judgment, and getting the calculation wrong can lead to the debtor challenging your enforcement application. Here is how it works.

The statutory rate

Post-judgment interest on County Court Judgments accrues at 8% simple per annum under the County Courts (Interest on Judgment Debts) Order 1991. "Simple" means interest is calculated on the original judgment principal only — it does not compound on itself or on accrued interest.

When interest applies (and when it does not)

Not every CCJ earns post-judgment interest. The 1991 Order sets a threshold:

Judgments of £5,000 or more: Statutory interest at 8% per annum accrues automatically from the date of judgment (or the date payment was due, if the court set a specific payment date). No court application is needed.

Judgments under £5,000: Post-judgment statutory interest does not accrue under the 1991 Order. For most small claims track judgments, the debt stays frozen at the original amount plus awarded costs.

Consumer Credit Act 1974 debts: Judgments arising from CCA-regulated agreements are excluded from post-judgment interest, regardless of the amount.

Commercial debts: If the original claim was business-to-business and subject to the Late Payment of Commercial Debts (Interest) Act 1998, a different rate applies — the Bank of England base rate plus 8%, along with fixed statutory compensation of £40 to £100 depending on the debt size.

How to calculate it

For a qualifying judgment of £5,000 or more, the daily interest rate is:

(Judgment principal × 8%) ÷ 365 = daily rate

For a £6,000 judgment:

• Annual interest: £6,000 × 0.08 = £480
• Daily rate: £480 ÷ 365 = approximately £1.315

If 120 days pass between the judgment date and the date you apply for enforcement, the accrued interest would be 120 × £1.315 = £157.81.

How partial payments affect the calculation

When the debtor makes a partial payment, the allocation follows a specific order under Article 6 of the 1991 Order:

1. First: Unrecovered enforcement costs and court fees
2. Second: Accrued interest up to the date of payment
3. Third: The judgment principal

This means partial payments reduce the principal only after all costs and interest are cleared. A debtor who pays £500 on a £6,000 judgment with £200 in costs and £150 in accrued interest does not reduce the principal by £500 — they clear the £200 costs and £150 interest first, leaving only £150 applied to the principal.

Keeping accurate running records is essential. Every enforcement application requires the creditor to state the current outstanding balance — and that balance must account for interest, costs and payments correctly.

Including interest in enforcement applications

When you file any enforcement form (N323, N337, N349, N379 or N293A), you must state the outstanding balance including accrued interest. The form asks for the original judgment amount and the amount now owed. If you overstate the balance, the debtor can challenge it. If you understate it, you lose the difference.

For commercial debts under the Late Payment Act, keep the interest calculation separate from the statutory judgment interest — they apply to different periods (pre-judgment and post-judgment) and at different rates.

Six-year cap on interest recovery

Under Section 24(2) of the Limitation Act 1980, you cannot recover arrears of judgment interest more than six years after the date the interest became due. If the judgment is old and interest has been accruing untouched, anything beyond the six-year window is gone.

The CCJ enforcement guide includes a Judgment Accounting Ledger with worked examples for tracking principal, interest, costs and payments — so every enforcement application states the correct outstanding balance.

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