Federal Post-Judgment Interest Rate Under 28 U.S.C. § 1961

The federal post-judgment interest rate on a money judgment entered in a United States district court equals the weekly average 1-year constant maturity Treasury yield for the calendar week before the judgment date. That rate is set by 28 U.S.C. § 1961, it accrues daily from the moment the clerk enters judgment, and it compounds annually until the last dollar is paid.¹ Because the rate is pegged to a market benchmark rather than chosen by a judge, the percentage shifts week to week as Treasury yields move.

How the Rate Is Set and Locked In

The rate mirrors what the federal government itself pays to borrow money for one year. It equals the weekly average 1-year constant maturity Treasury yield published by the Board of Governors of the Federal Reserve System for the calendar week preceding the date of the judgment.¹ Once the clerk enters judgment, that week’s rate locks in for the life of the judgment. Later moves in Treasury yields do not change it.

Two judgments entered a week apart can therefore carry meaningfully different rates. A judgment entered during a period of tight monetary policy might sit above 5%; one entered in a low-rate environment might sit below 1%. Neither side controls the timing of entry, so the applicable rate is essentially fixed by the calendar.

Where to Find the Current Rate

The Federal Reserve publishes Treasury yield data through its H.15 Statistical Release, “Selected Interest Rates,” which comes out every business day at 4:15 p.m. and includes weekly averages for the various Treasury maturities.² Historical weekly, monthly, and annual averages are available through the Federal Reserve’s Data Download Program.

The Administrative Office of the United States Courts also distributes a table of post-judgment interest rates to federal judges and posts it online.³ That table is often the easiest starting point because it lists the applicable rate by week, matched to the statute. To verify the rate for a specific judgment, look up the weekly average for the calendar week immediately before the entry date.

How the Interest Is Calculated

The statute requires daily computation and annual compounding.¹ Multiply the judgment amount by the applicable rate to get annual interest, divide by 365 for a daily figure, then multiply by the number of days elapsed since entry to get the interest owed for the first year.⁴

Compounding kicks in at the one-year mark. Any unpaid accrued interest is added to the principal, and the daily calculation for the second year runs on the larger combined balance. A $100,000 judgment at 4.5% produces $4,500 in interest after the first year. If nothing is paid, the second year’s interest accrues on $104,500, producing $4,702.50. Over several years the gap widens quickly, which is why the statute uses compounding rather than simple interest.

Partial payments reduce the base going forward. Interest continues to run on whatever balance remains until the judgment, including all accumulated interest, is fully satisfied.⁴

When Interest Starts Running

Interest begins on the date the judgment is entered on the civil docket, not the date a jury returns a verdict or a judge signs an order.¹ Federal Rule of Civil Procedure 58 defines when entry occurs: if a separate document is required, entry happens when the judgment is on the civil docket and set out in that separate document, or 150 days after docketing, whichever comes first.⁵ A gap of days or weeks can sit between a verdict and formal entry. Interest does not accrue during that gap.

What an Appeal Does to the Interest

An appeal does not stop the clock. Federal Rule of Appellate Procedure 37 provides that when a money judgment is affirmed, interest is payable from the date the district court entered judgment, as though no appeal had been taken.⁶ The advisory committee notes state that interest attaches to money judgments by force of law upon initial entry.

The practical effect matters for anyone weighing an appeal. Three years of interest at 4% on a $500,000 judgment, with compounding, adds roughly $60,000 or more to what the debtor owes if the appeal fails. Posting a supersedeas bond can stay execution during the appeal, but the bond typically must cover the judgment amount plus estimated interest and costs.

Which Judgments Are Covered

Section 1961 applies to “any money judgment in a civil case recovered in a district court.”¹ That reaches jury verdicts and bench-trial awards across the full range of civil claims: contract disputes, personal injury, employment discrimination, intellectual property, and anything else that ends in a money judgment in federal court. Where the judgment includes costs or attorney fees, interest accrues on the full amount.

Diversity cases are covered too. A federal court applying state substantive law still uses the federal rate for post-judgment interest, because § 1961 is a uniform federal procedural rule. A plaintiff who wins a diversity case might receive pre-judgment interest at a state-law rate and post-judgment interest at whatever the Treasury yield happened to be the week before entry.

Exceptions and Special Rules

Several categories operate outside the standard Treasury-yield rate:

Internal revenue tax cases. Interest runs at the IRS underpayment or overpayment rate under 26 U.S.C. § 6621, adjusted quarterly, rather than the Treasury-yield rate. Those rates tend to run several percentage points higher than the 1-year Treasury yield.⁷⁸
Court of Federal Claims judgments. Interest is allowed only under the tax-case rule above or another specific provision of law.⁷
Judgments against the United States. Separate rules in 28 U.S.C. § 2516(b) and 31 U.S.C. § 1304(b) govern how and when interest is paid from the federal judgment fund. For district court judgments, interest from the fund covers only the period from filing the judgment transcript with the Treasury through the day before the appellate mandate of affirmance.⁹

The statute also does not disturb interest rules for courts it does not specifically address, so state-court judgments and certain specialized federal tribunals may operate under entirely separate frameworks.⁷

Tax Treatment of the Interest

Post-judgment interest received is taxable as ordinary income. The IRS treats interest on any obligation, including a court judgment, as ordinary income under 26 U.S.C. § 61(a)(4). That is true even where the underlying judgment itself is excludable from income, as with certain physical-injury awards under § 104; the interest component is taxed separately.¹⁰

On the paying side, a business that owes post-judgment interest can generally deduct it as a business expense under 26 U.S.C. § 163(a). The deduction for business interest is capped at business interest income plus 30% of adjusted taxable income, with any excess carried forward.¹¹ Individual judgment debtors paying interest on a personal, non-business obligation generally cannot deduct it, because the Tax Cuts and Jobs Act suspended the deduction for personal interest through 2025, and later extensions may affect that further. Check the current status with a tax professional before relying on it.

1
Office of the Law Revision Counsel. 28 USC 1961 – Interest
2
Federal Reserve. Selected Interest Rates – H.15
3
United States Courts. 28 USC 1961 – Post Judgment Interest Rates
4
United States District Court for the Southern District of New York. How to Calculate Post Judgment Interest
5
Legal Information Institute. Federal Rules of Civil Procedure Rule 58 – Entering Judgment
6
Legal Information Institute. Federal Rules of Appellate Procedure Rule 37 – Interest on Judgment
7
Office of the Law Revision Counsel. 28 USC 1961 – Interest
8
Internal Revenue Service. Quarterly Interest Rates
9
Office of the Law Revision Counsel. 31 USC 1304 – Judgments, Awards, and Compromise Settlements
10
Internal Revenue Service. IRS Memorandum on Interest Income
11
Office of the Law Revision Counsel. 26 US Code 163 – Interest