Georgia Post-Judgment Interest Rate: How It's Calculated

Interest Starts Automatically on the Day of Judgment

Under O.C.G.A. § 7-4-12, every monetary judgment entered in Georgia accrues post-judgment interest by operation of law from the date the clerk enters the judgment. You do not need to ask for it. The judge does not need to mention it in the order. It starts running automatically.

The Formula

The statutory post-judgment interest rate is the Federal Reserve prime rate on the date judgment is entered, plus 3 percentage points. The rate is fixed at that moment and does not fluctuate over the life of the judgment, even if the prime rate later changes.

For example, if the prime rate is 8.00% on the day judgment is entered:

• Statutory rate: 8.00% + 3.00% = 11.00% per year
• On a $10,000 judgment: $1,100 per year in interest, or about $3.01 per day

That $10,000 judgment becomes $13,300 after three years of non-payment, before adding any enforcement costs.

Simple Interest, Not Compound

Georgia post-judgment interest accrues as simple interest calculated annually on the principal judgment amount (O.C.G.A. § 9-12-10). Interest does not compound. Interest does not accrue on pre-judgment interest, court costs, or attorney's fees that were awarded separately — only on the principal sum recovered.

The Contract Rate Exception

If the underlying lawsuit was based on a written contract that specifies an interest rate — a promissory note, a lease with a late-payment clause, a credit agreement — the judgment bears interest at the rate stated in the contract, not the statutory prime-plus-3 rate (O.C.G.A. § 7-4-12(b)). The contract rate must be explicitly written in the agreement; an oral understanding does not qualify.

This exception can work in the creditor's favor if the contract rate exceeds the statutory rate, or against the creditor if the contract specifies a lower rate. Most small claims cases, especially those involving unreturned deposits, property damage, or unpaid invoices without a written interest clause, fall under the statutory formula.

What Interest Applies To

Post-judgment interest accrues only on the principal judgment amount. It does not accrue on:

• Pre-judgment interest that was part of the award
• Court filing fees or service costs
• Attorney's fees, if any were awarded
• Post-judgment enforcement costs you incur later

However, all of these additional amounts — court costs, service fees, and enforcement expenses — are still owed by the debtor and are added to the total Fi. Fa. balance. They just do not accrue their own interest layer.

Tracking the Running Balance

Because interest accrues daily, the amount the debtor owes changes every day. When you file a garnishment or request a disbursement from the court registry, you need to calculate the current balance accurately. A ledger that tracks the original principal, the daily interest accrual, each enforcement cost added, and each payment received keeps the numbers clean and defensible if the debtor disputes the total.

The Georgia Small Claims Judgment Collection Guide includes a balance-and-interest ledger worksheet and walks through how to calculate the running total for each enforcement action you file.

See more Georgia guides →