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

Every unpaid Louisiana judgment accrues interest from the day it is signed until the day it is paid in full. That interest is not discretionary — it is statutory, and it can add hundreds or thousands of dollars to the debtor's obligation over time.

The Current Rate

Louisiana's judicial interest rate for 2026 is 7.50% per annum. The rate is set each year by the Commissioner of Financial Institutions on October 1, based on the Federal Reserve Board's discount rate plus 3.25 percentage points (La. R.S. 13:4202(B)).

Recent rates for reference:

The 2027 rate was determined on October 1, 2026, and will be published in the December 2026 Louisiana Register.

How Interest Accrues

Post-judgment interest is simple interest on the outstanding principal — not compound interest. It begins accruing from the date the judgment is signed and runs continuously until the judgment is satisfied. If the rate changes on January 1 (because a new calendar year starts), the new rate applies to all accrual from that point forward.

Here is a simplified example for a $3,000 judgment signed on July 1, 2025:

• July 1 – Dec 31, 2025 (183 days): $3,000 × 8.25% × (183/365) = $124.09
• Jan 1 – Dec 31, 2026 (365 days): $3,000 × 7.50% × (365/365) = $225.00
• Total accrued by Dec 31, 2026: $349.09

That $3,000 judgment is now worth $3,349.09 before you count court costs or enforcement expenses.

How Partial Payments Are Applied

When you receive a partial payment — through garnishment, voluntary payment, or seizure proceeds — Louisiana civil accounting rules apply the money in this order:

1. Accrued interest first
2. Court costs and enforcement expenses second
3. Principal last

This allocation matters because interest continues to accrue on the unpaid principal balance. A $500 garnishment payment on a judgment with $200 in accrued interest only reduces your principal by $300 (after the interest and any costs are covered).

Why Accurate Records Matter

If you file a garnishment petition or pursue a debtor examination, the court expects you to state an accurate current balance. An overstated balance can get your garnishment challenged; an understated one means you leave money on the table.

Track every transaction:

• The original judgment principal
• Court costs awarded in the judgment
• Post-judgment enforcement expenses (filing fees, service fees, recording fees)
• Interest accrued at the correct rate for each calendar year
• Every payment received, with the date and amount
• The allocation of each payment (to interest, costs, then principal)

Interest on Enforcement Costs

Post-judgment interest accrues on the judgment principal, not on enforcement costs you advance after the judgment. However, those costs are added to the total the debtor owes and are recoverable ahead of principal when payments come in.

The Bottom Line

On a typical $4,000 small claims judgment left unpaid for two years, you could be owed over $600 in statutory interest alone. That number grows every day the debtor delays.

For a complete interest calculation framework, a pre-built ledger template, and the full enforcement process, see our Louisiana Judgment Collection Guide.

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