This page provides general legal information and calculation tools, not legal advice. DocketMath is not a law firm and does not provide legal representation, and using this site does not create an attorney-client relationship. Laws change and exceptions apply, so deadlines and amounts specific to your situation should be confirmed with a licensed attorney in your jurisdiction.

Maryland Prejudgment Interest on Contract Claims at 10% Per Year

In Maryland, the statutory rate for prejudgment interest on a contract claim is set at 10% per year under Md. Code, Cts. & Jud. Proc. § 11-107(a). This means that once a court awards damages for breach of contract, the plaintiff may recover interest at that fixed annual rate from the date the cause of action accrued. The statute applies automatically unless the parties agreed to a different rate in their contract. The law does not require the court to apply a variable market rate or consider equitable factors for contract claims; the 10% figure is the default. The worked example below illustrates how this rate is applied over a specific period. Use the DocketMath calculator to estimate the accrued interest on your own claim.

Governing authority

In Maryland, the cost of delay rule is set by Md. Code, Cts. & Jud. Proc. § 11-107(a). The verified packet cites Md. Code, Cts. & Jud. Proc. § 11-107(a) (https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcj&section=11-107&enactments=false).

Maryland cost of delay: the verified value is 10% under Md. Code, Cts. & Jud. Proc. § 11-107(a). The verified packet cites Md. Code, Cts. & Jud. Proc. § 11-107(a) (https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcj&section=11-107&enactments=false).

Estimate your own result: every situation has exceptions that can change the outcome. Use the cost of delay calculator to estimate your specific figure.

This page provides general legal information and calculation tools, not legal advice. DocketMath is not a law firm and does not provide legal representation, and using this site does not create an attorney-client relationship. Laws change and exceptions apply, so deadlines and amounts specific to your situation should be confirmed with a licensed attorney in your jurisdiction.