Delaware Post-Judgment Interest Rate: How to Calculate It

Post-judgment interest is money the debtor owes you on top of the original judgment amount. Under 6 Del. C. § 2301(a), the statutory rate is set at 5 percentage points above the Federal Reserve discount rate in effect when judgment is entered or default occurs.

The Formula Under 6 Del. C. § 2301(a)

Delaware's legal interest rate for post-judgment obligations is the Federal Reserve discount rate in effect when judgment is entered or default occurs, plus 5 percentage points.

If the Fed discount rate is 5.00% when your judgment is entered, the post-judgment interest rate is 10.00% per year. The calculation uses simple interest on a 365-day year — no compounding.

The formula:

Interest = Principal × Rate × Time

Where time is measured in days divided by 365. On a $5,000 judgment at 10% for one full year, that's $5,000 × 0.10 × 1.0 = $500 in accrued interest.

How Partial Payments Are Applied

When the debtor makes a payment — whether through wage garnishment or direct — Delaware applies the money in a specific order:

1. Court costs first (filing fees, service fees, execution fees)
2. Accrued interest second
3. Principal last

This allocation matters because interest continues to accrue on the remaining principal balance after each payment. A debtor who pays $1,000 on a $5,000 judgment with $65 in costs and $500 in accrued interest isn't reducing the principal by $1,000. That payment covers $65 in costs, $500 in interest, and only $435 toward principal — leaving a $4,565 balance that continues generating interest.

Why the Declining-Balance Math Matters

If you're collecting through wage garnishment over many months, the interest calculation becomes a running ledger. Each pay period brings a new payment that reduces the balance slightly, but interest keeps accruing on whatever remains. Getting this math wrong can mean understating what's owed (and accepting satisfaction too early) or overstating it (which exposes you to a debtor challenge).

You need to track: the date and amount of every payment, the allocation between costs/interest/principal, the new principal balance after allocation, and the next day's interest accrual on that reduced balance.

When a Written Contract Sets a Different Rate

If the underlying written contract specifies a different legal rate, that rate may apply instead of the statutory formula. Check the judgment and contract for the rate that governs.

Interest Stops When the Judgment Is Paid

Post-judgment interest accrues until the judgment is fully satisfied — principal, costs, and all accrued interest. The day you receive the final payment, interest stops and the 90-day satisfaction-filing clock under 10 Del. C. § 9567 begins.

The Delaware Judgment Collection Guide includes a balance tracking ledger with the interest formula built in, so you can calculate the exact payoff amount on any given date.

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