Maryland Post Judgment Interest Rate — How to Calculate What You're Owed

Post-judgment interest in Maryland isn't something you file for or request — it accrues automatically from the date the judgment is entered. Under CJP § 11-107(a), the rate is 10% per year on standard civil money judgments. Certain specialized categories (like some rent or tax judgments) may accrue at 6% under § 11-107(b), but most small claims judgments use the 10% rate.

How to Calculate It

Maryland uses simple interest, not compound interest. The formula:

Interest = Unpaid Principal × 0.10 × (Days Elapsed ÷ 365)

For a $3,000 judgment entered on January 1, if you're calculating interest on July 1 (181 days later):

$3,000 × 0.10 × (181 ÷ 365) = $148.77

The total owed on July 1 would be $3,148.77 (assuming no partial payments and no additional court costs).

Interest accrues on the principal judgment amount only — not on court costs and not on previously accrued interest. It does not compound.

Applying Partial Payments

When you receive a partial payment from the debtor or through garnishment, Maryland's allocation rule (the "United States Rule") applies the money in this order:

1. Reimbursable court costs (filing fees, service fees you've advanced)
2. Accrued interest to date
3. Remaining principal

Suppose you have the $3,000 judgment from above and receive a $500 payment on July 1. First, assume you've advanced $50 in filing fees and $148.77 in interest has accrued. The $500 pays off $50 in costs, then $148.77 in interest, leaving $301.23 to reduce the principal. Your new principal balance is $2,698.77.

From that point forward, interest accrues on the reduced principal of $2,698.77 — not the original $3,000.

Interest on Your Garnishment Paperwork

When you file a wage or bank garnishment, the court requires you to state the total amount owed including accrued interest. Calculate interest through the filing date and add it to the principal and court costs. The writ will specify this total as the cap on what the garnishee withholds or freezes.

If you're running a continuing wage garnishment, update the interest calculation each month in your mandatory creditor's monthly report (Form DC-CV-066). Overstating the balance can lead to the debtor challenging the garnishment.

Common Mistakes

The most frequent errors creditors make with post-judgment interest:

• Compounding interest — Maryland doesn't allow it on standard judgments. Each day's interest is calculated on the original unpaid principal, not on principal-plus-interest.
• Forgetting to credit partial payments against interest first — if you reduce principal before clearing accrued interest, your running balance will be wrong.
• Using the wrong rate — 10% is the default for civil money judgments. If the underlying contract specifies a different rate, you'd need to check whether the contract rate or the statutory rate applies (generally the contract rate controls pre-judgment interest, while the statutory 10% applies post-judgment).

When Interest Stops

Interest stops accruing when the judgment is fully satisfied — meaning principal, accrued interest and reimbursable court costs are all paid. Once you receive full payment, you have 15 days to file a Notice of Satisfaction (Form DC-CV-031). The court record then reflects the judgment as satisfied and active garnishments are released.

For interest calculation worksheets, partial payment ledger templates and the full collection workflow, see our Maryland Small Claims Judgment Collection Guide.

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