Vermont Post-Judgment Interest Rate: 12% and How to Calculate It

Vermont's 12% Statutory Rate

Under 9 V.S.A. § 41a(a), unless another law provides otherwise, interest on a Vermont judgment accrues at 12% per year. The Vermont Supreme Court has interpreted the statute's actuarial method as simple interest, without compounding, on judgment awards (Greenmoss Builders, Inc. v. Dun & Bradstreet, Inc., 149 Vt. 365, 370 (1988)). For a recorded judgment lien, 12 V.S.A. § 2903(c) sets the annual rate at 12%. The rate applies from the date judgment is entered until the balance is fully satisfied — no separate court order is needed.

Twelve percent is notably higher than most states, which makes the running balance grow faster than many creditors expect. On a $4,000 judgment, that's $480 per year, or roughly $1.32 per day.

How to Calculate It

For a period with no payment, the interest accrued is:

Interest = Unpaid balance × 0.12 × (Days ÷ 365)

If you have a $4,000 judgment and 92 days pass before any payment, the accrued interest is $4,000 × 0.12 × (92 ÷ 365) = $120.99.

When a partial payment arrives, apply it first to accumulated interest; any remainder reduces the unpaid judgment principal. Recalculate interest on the remaining principal going forward.

Example with a partial payment:

• Oct 1, 2024: Judgment entered — $4,000
• Dec 31, 2024 (92 days): Interest = $120.99 → balance = $4,120.99
• Jan 1, 2025: Debtor pays $500 → $120.99 pays accrued interest and $379.01 reduces principal; unpaid principal = $3,620.99
• Oct 1, 2025 (273 days later): Interest on $3,620.99 = $325.00; balance = $3,945.99

What Counts Toward the Balance

Track court-approved post-judgment costs separately from principal; the 12% rate applies to unpaid judgment principal:

• Post-judgment motion fees ($65 each)
• Sheriff service fees
• Town clerk recording fees ($15/page for judgment liens)

Keep a running ledger that shows each transaction — the original principal, every fee added, each partial payment, and the interest calculation for each period. The court can ask to see this accounting at any enforcement hearing.

When Interest Stops

Interest stops accruing on the date you receive full payment. Within 21 days of that date, you must file a satisfaction notification (Form 100-00290) with the court.

If you recorded a judgment lien, don't forget to record a release with the town clerk after payment.

The Vermont judgment collection guide includes a payment tracking ledger designed for Vermont's 12% rate — pre-formatted to log payments, fees, and interest periods in one place.

See more Vermont guides →