Oregon Post-Judgment Interest Rate: How the 9% Default Works

Under ORS 82.010, the default post-judgment interest rate is 9% per year. Interest accrues from the date the judgment is entered unless the judgment specifies another date. A judgment on a contract bearing more than 9% uses the contract rate, and interest is simple unless the contract provides otherwise. Post-judgment interest also accrues on pre-judgment interest and attorney fees and costs included in the judgment.

For creditors trying to collect a small claims judgment, this interest does two things: it compensates you for waiting, and it gives the debtor a financial incentive to pay sooner rather than later.

How Default Interest Is Calculated

For an award that carries the 9% default rate, calculate interest on the amount of the money award. Do not assume the calculation always uses only the original principal; the award may include pre-judgment interest, attorney fees, and costs.

The daily rate is 9% ÷ 365 = approximately 0.02466% per day.

For a $3,000 judgment:

• Daily interest: $3,000 × 0.09 ÷ 365 = $0.74 per day
• Monthly interest: approximately $22.50
• Annual interest: $270

After one year without payment, the debtor owes $3,270. After five years: $4,350.

Calculating Accrued Interest on a Specific Date

When you file a garnishment writ, prepare for a debtor examination, or accept a settlement, you need to know exactly what's owed on that date. Here's the formula:

Interest = Money award amount × 0.09 × (Days since judgment entry ÷ 365)

Example: $5,000 judgment entered March 15, 2026. You're filing a garnishment on October 21, 2026 — that's 220 days.

Interest = $5,000 × 0.09 × (220 ÷ 365) = $271.23

Total owed: $5,000 + $271.23 = $5,271.23 (before any enforcement costs)

Adding Enforcement Costs to the Balance

Enforcement costs are recoverable only when authorized by law or included in the money award. Interest accrues on the amount of the award, including any pre-judgment interest and costs included in it; do not add enforcement costs to the balance unless they are authorized.

Typical recoverable enforcement costs:

• Circuit court garnishment clerk fee: $47
• Sheriff garnishment delivery: $25
• Bank search fee: $15 per institution
• Sheriff property levy: $89

Keep receipts for everything. You'll need to account for these when calculating the total balance for your Debt Calculation Form (ORS 18.832) with each garnishment writ.

When Partial Payments Come In

If the debtor makes payments — voluntarily or through garnishment — track how each payment is applied. Under Oregon's payment-allocation rules, apply payments first to court-authorized costs, then to accrued interest, then to principal. This affects the running balance and the amount of interest that continues to accrue.

Example: $5,000 judgment with $500 in accrued interest and no court-authorized costs (total: $5,500). Debtor pays $700.

• $500 goes to accrued interest (zeroing it out)
• $200 goes to principal (reducing it to $4,800)
• Interest now accrues on $4,800

If garnishment payments come in over several months, each payment reduces the base differently depending on accumulated interest at that point. A running ledger prevents disputes and gives you an accurate number for your satisfaction filing.

How This Affects Collection Strategy

The 9% default rate is relatively aggressive for a statutory rate. It creates real incentive for creditors to pursue collection even on smaller judgments, because the interest compounds the value of patience.

On a $2,000 judgment, you accumulate $180 per year in interest. Over the 10-year life of the judgment (before renewal), that's $1,800 in interest alone — nearly doubling the original amount. If you renew for another 10 years, a debtor who eventually pays in year 15 owes $2,000 + $2,700 = $4,700.

For judgment-proof debtors, this math argues for recording the judgment lien and waiting rather than writing it off. The debtor's circumstances may change, and every day that passes increases what they owe.

Settlement Negotiations

The 9% interest rate also gives you leverage in settlement discussions. A debtor facing a $5,000 judgment plus $1,500 in accrued interest and $200 in enforcement costs might agree to pay $5,500 today rather than risk the balance growing further through continued enforcement. Accepting a discounted lump sum can be worthwhile when the alternative is years of uncertain collection.

The Oregon Judgment Collection Guide includes a judgment balance tracker worksheet for calculating running interest, logging payments, and knowing when the balance reaches zero so you can file the satisfaction of judgment.

See more Oregon guides →