Post-Judgment Interest Rate in Illinois: 9%, 5%, and How to Calculate It

Every day an Illinois judgment goes unpaid, interest accrues automatically under 735 ILCS 5/2-1303. You do not need a court order to start the clock — it runs from the date the judgment is entered. The rate depends on the type of debt.

The Three Rates

9% per year — standard civil judgments. This covers breach of contract, property damage, personal injury, and most small claims awards. Simple interest, not compound.

5% per year — consumer debt judgments of $25,000 or less, entered on or after January 1, 2020. This applies when the underlying debt arose from a personal, family, or household transaction. The Consumer Fairness Act reduced the rate for these cases.

6% per year — judgments against government entities (local governments, school districts, state agencies).

Most small claims judgments between individuals fall under the 9% standard rate. If the debt involved a consumer transaction — for example, an unpaid credit card balance or a personal loan — the 5% rate applies instead.

The Daily Calculation

Interest is simple, calculated daily on the unsatisfied balance:

Daily Interest = Unsatisfied Balance × Statutory Rate ÷ 365

On a $5,000 judgment at 9%, that works out to $1.23 per day, or about $450 in the first year. Over the full seven-year enforcement window, an unpaid $5,000 judgment would accrue $3,150 in interest alone — bringing the total owed to $8,150, plus any court costs.

How Partial Payments Are Applied

When the debtor makes a partial payment, Illinois accounting rules allocate the money in a specific order: first to accrued interest and court costs, then to the principal balance. This matters because it means the interest-bearing principal stays higher for longer.

Example: You hold a $5,000 judgment with $250 in court costs, entered January 15. By July 1 (166 days), you have accrued $214.89 in interest at 9%. The total balance is $5,464.89. The debtor pays $1,000 on July 1.

That $1,000 first satisfies the $214.89 in accrued interest. The remaining $785.11 reduces the principal-and-costs balance to $4,464.89. Interest going forward accrues on this lower number — $1.10 per day instead of $1.29.

Court Costs Are Part of the Balance

Filing fees, sheriff service fees, certified mail postage, and recorder fees may be recoverable when authorized by law or court order. Add only qualifying costs to the judgment balance; interest accrues on the unpaid judgment balance at the applicable statutory rate.

Do Not Leave Interest on the Table

Many pro se creditors forget to calculate interest when they receive a payoff. If the debtor offers to settle, make sure the number includes every day of accrued interest and every recoverable cost. Accepting the original judgment amount after two years of 9% interest means leaving nearly $1,000 uncollected on a $5,000 award.

The Illinois judgment collection guide includes a Cost and Interest Ledger worksheet that tracks your running balance — principal, costs, daily interest, and partial payment credits — so you always know the exact amount owed.

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