South Dakota Post-Judgment Interest Rate: 10% Per Year Explained

Every South Dakota money judgment generally accrues interest at 10% per year from the date the judgment is entered. That rate is set by SDCL 54-3-5.1 and applies automatically unless the judgment reflects a different lawful contractual rate.

For a $5,000 judgment, that's $500 per year, or roughly $1.37 per day. Over a multi-year collection effort, the interest alone can add significantly to the total the debtor owes.

How the Rate Works

The 10% rate under SDCL 54-3-5.1 (the Category B rate) applies to all civil money judgments, including small claims, unless the original contract between the parties specified a different lawful interest rate that the court incorporated into the judgment.

Interest begins accruing on the exact date the judgment is signed and docketed by the Clerk of Courts. It runs as simple interest on the remaining unpaid principal balance — not compound interest, unless the judge specifically ordered compounding (which is rare in small claims).

Calculating What You're Owed

The daily interest formula is straightforward:

Daily interest = (Outstanding principal × 0.10) ÷ 365

For a $3,000 judgment with no partial payments:

• Annual interest: $3,000 × 0.10 = $300
• Daily interest: $300 ÷ 365 = $0.82/day
• After 6 months (183 days): ($300 ÷ 365) × 183 = $150.41 in accrued interest

When the debtor makes a partial payment, credit it as required by the judgment, agreement, and applicable law. Recalculate interest on the remaining uncollected principal.

Keeping a Clean Accounting Ledger

The court and the debtor both have the right to see an itemized breakdown of what you claim is owed. A clean ledger shows:

1. Original judgment principal
2. Court costs awarded in the judgment
3. Accrued interest (date range × daily rate)
4. Authorized post-judgment enforcement costs (sheriff fees, filing fees, certified mail)
5. Total owed
6. Less any payments received
7. Current balance

Sloppy accounting is one of the most common reasons judges push back during enforcement proceedings. If you can't show exactly how you arrived at the number on your garnishment affidavit, the debtor's attorney (or the debtor themselves) will challenge it.

What Counts as a Recoverable Cost

You can add court-approved enforcement expenses to the running balance: clerk filing fees, sheriff service and execution fees, certified mail postage, bank garnishment processing fees, and statutory appraisal fees. You cannot add your personal time, travel expenses, or private collection agency fees.

Keep every receipt. When you file Form UJS-019 (Satisfaction of Judgment) after full payment, the total on that form should match your ledger exactly.

The 10% Rate Over a Long Collection

For judgments that take years to collect — and many do — the interest substantially increases the total recovery. A $10,000 judgment left unpaid for five years accumulates $5,000 in interest alone, bringing the total to $15,000 (plus enforcement costs). The debtor's obligation grows every day they don't pay.

This is one reason why recording a judgment lien on the debtor's real property (which happens automatically upon docketing) is so valuable. Even if you can't force a sale of their homestead, the lien balance — principal plus years of 10% interest — must typically be addressed when the debtor eventually sells or refinances.

The South Dakota Judgment Collection Guide includes a balance tracker worksheet that automates the interest calculation, logs partial payments and enforcement costs, and produces the accounting format courts expect.

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