Minnesota Post-Judgment Interest Rate: How to Calculate What You're Owed

A Minnesota judgment doesn't just sit at the original amount while you chase the debtor. Post-judgment interest accrues automatically on the unpaid balance from the date of entry, and you're entitled to collect every dollar of it.

The 2026 Rate

Under Minn. Stat. § 549.09, the State Court Administrator sets the statutory interest rate each year. For 2026:

• Judgments of $50,000 or under: 4% per annum simple interest
• Judgments over $50,000: 10% per annum simple interest (for non-governmental, non-family civil judgments entered on or after August 1, 2009)

Most small claims judgments fall well under the $50,000 threshold, so the 4% rate is what you'll use. Child support judgments are the exception — they carry 0% interest under Minn. Stat. § 548.091.

When Interest Starts Running

Interest begins accruing on the date the judgment is entered — not the date you docket it in District Court, and not the date you start enforcement. For a Conciliation Court judgment, that's the date the court administrator processes the Notice of Order for Judgment.

This means interest is accumulating during the 21-day finality period (24 days when notice is served by U.S. Mail), during the docketing process, and through every day the debtor takes to pay. You don't need to do anything to "activate" it — it's automatic.

How to Calculate

Minnesota uses simple annual interest, not compound. The formula:

Annual Interest = Unpaid Principal Balance × 4%

For daily accrual, divide by 365:

Daily Interest = Principal × 0.04 ÷ 365

Example: On a $5,000 judgment at 4%:

• Annual interest: $200
• Daily interest: $0.548
• After 6 months (182 days): $99.73
• After 1 year: $200
• After 3 years: $600

The interest adds up. On a $10,000 judgment left unpaid for two years, you'd be owed $800 in interest on top of the principal — plus any recoverable enforcement costs.

How Payments Are Credited

This is the part most creditors get wrong. Under Minn. Stat. § 549.09, Subdivision 3, payments from the debtor are credited in a specific order:

1. First to taxable disbursements paid or incurred after entry of judgment, if an affidavit was filed under Minn. Stat. § 549.09, subd. 4
2. Then to accrued interest on the unpaid principal balance
3. Then to the unpaid principal balance

This matters because it means early partial payments reduce the interest and cost portion first, leaving the principal — which continues generating interest — intact longer. It's the same structure used in mortgage amortization, and it works in the creditor's favor.

When the debtor sends you $500 on a $5,000 judgment with $200 in accrued interest and $135 in taxable enforcement disbursements (and the required affidavit under Minn. Stat. § 549.09, subd. 4, has been filed), the payment applies:

• $135 to taxable disbursements → zeroed
• $200 to interest → zeroed
• $165 to principal → new principal: $4,835

Interest then continues accruing on $4,835.

Adding Enforcement Costs

Under Minn. Stat. § 549.09, only disbursements made taxable by statute or court rule, paid or incurred after entry of judgment and included in an affidavit filed under subdivision 4, may be deducted from payments on the judgment. Use Form JGM106 for eligible increased costs and keep supporting receipts; the $40 docketing fee, $55 writ fee, $15 garnishee fees, sheriff charges, and service costs are not all automatically recoverable.

Keeping Track

Accurate interest accounting matters when you eventually file a Satisfaction of Judgment or if the debtor challenges your claimed balance. Keep a running ledger that tracks:

• The original principal
• Each enforcement cost as it's incurred (with receipt dates)
• Daily interest accrual
• Every payment received (date, amount, and how it was credited)
• The current total balance

The Minnesota judgment collection guide includes a pre-built interest and payment ledger set to the 2026 statutory rate, with the credit-ordering rules built in so you always know the exact current balance.

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