Texas Finance Code 304.003: How Post-Judgment Interest Is Calculated
Every unpaid Texas money judgment accrues post-judgment interest from the date it is rendered until it is satisfied. For judgments not governed by Texas Finance Code § 304.002, § 304.003 sets the rate. For a contract judgment where the contract provides for interest or a time price differential, § 304.002 uses the lesser of the contract rate or 18% per year. The Office of Consumer Credit Commissioner (OCCC) publishes the applicable rates.
How the Rate Is Set
Under § 304.003, the Consumer Credit Commissioner determines on the 15th day of each month the rate that applies to money judgments rendered in the following calendar month. The rate is the prime rate published by the Board of Governors of the Federal Reserve System, with a 5% floor and a 15% ceiling.
The rate is fixed for the month the judgment is rendered and stays the same for the life of that judgment. If your judgment was rendered in October 2026, you look up the October 2026 rate — it doesn't change if the prime rate moves later.
Where to Find the Current Rate
The OCCC maintains a historical table of post-judgment interest rates on the Texas Office of Consumer Credit Commissioner website. The table lists the rate for each month going back decades.
For judgments rendered in October 2026, the published rate is 6.75% per annum. The rate applies to the judgment amount, including court costs awarded in the judgment, from the date the judgment is rendered until it's paid in full.
Calculating Interest on Your Judgment
Post-judgment interest compounds annually under Texas Finance Code § 304.006. The daily accrual formula is:
Daily interest = (Current unpaid judgment balance × Annual rate) ÷ 365
For a $5,000 judgment at 6.75%:
- Annual interest: $5,000 × 0.0675 = $337.50
- Daily interest on the initial balance: $337.50 ÷ 365 = about $0.925
- After 6 months (182 days): about $168.29
- After 1 year: $337.50
- After 3 years with annual compounding: about $1,082.38
Interest compounds annually, so previously accrued interest earns interest in subsequent years. Partial payments reduce the unpaid balance used to calculate future interest.
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When Interest Starts Running
Interest begins on the date the judgment is signed by the Justice of the Peace — not the date it's entered on the docket, not the date the appeal window closes, and not the date you start enforcement. Even during the 21-day appeal window and the 30-day Writ of Execution waiting period, interest is accruing.
If the debtor appeals and wins a trial de novo in County Court, the original interest calculation is moot because the JP judgment is vacated. But if the County Court enters a new judgment in your favor, a new interest clock starts from that judgment's signing date.
Adding Interest to Your Enforcement Documents
When you request a Writ of Execution, the clerk prepares the writ with the principal balance, accrued interest to date, and awarded court costs. The Constable collects the total amount.
For a Writ of Garnishment, include the interest calculation in your supporting affidavit. Banks freeze funds up to the total amount you claim, including accrued interest.
When you finally receive full payment, you'll need the exact per-diem figure to calculate the payoff amount through the date of payment. Keep a running ledger — the debtor is entitled to a satisfaction of judgment showing the full accounting.
The Difference Between Pre-Judgment and Post-Judgment Interest
Pre-judgment interest (Finance Code § 304.104) applies in wrongful death, personal injury, and property damage cases. It accrues from the earlier of the 180th day after the defendant receives written notice of a claim or the date suit is filed until the day before judgment is rendered. It has different rate rules.
Post-judgment interest applies to Texas money judgments under § 304.002 or § 304.003, depending on whether the contract provides for interest or a time price differential.
The Collecting a Small Claims Judgment in Texas guide includes a judgment balance tracker that calculates daily interest at your judgment's rate so you always know the current payoff figure.
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