Pre-Judgment Interest Calculator for Legal Claims
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Citation
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Pre-judgment interest is the interest accrued on a monetary award from the time the cause of action arises until the judgment is rendered by a court. It serves to compensate the claimant for the time they have been deprived of the use of their funds.
Historical Background
Pre-judgment interest has been a key part of legal proceedings in many countries. Historically, courts have allowed for pre-judgment interest to help make the plaintiff whole by compensating for the time lost in litigation. The interest rate is usually determined by the prevailing market interest rate or statutory law, depending on the jurisdiction.
Calculation Formula
The formula to calculate pre-judgment interest is:
\[ \text{Accrued Interest} = \text{Principal} \times \frac{\text{Interest Rate}}{100} \times \left(\frac{\text{Days}}{365}\right) \]
Where:
- Principal is the original amount of money.
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