Judgment Interest Calculator Guide for Alabama

Alabama interest rules

This source-backed guide covers Alabama judgment, legal-rate, and contract-accrual interest rules. It certifies only the quoted source-backed rules below; related interest categories remain outside this page unless they are expressly listed in the receipt.

Money judgment interest

Alabama contract-action money judgments bear interest from the cause-of-action date at the contract rate. Other money judgments bear 7.5% annual interest, and qualifying fiduciary or attorney fees taxed as costs bear a like rate from entry.

Interest on Money Judgments and Costs. (a) Judgments for the payment of money, other than costs, if based upon a contract action, bear interest from the day of the cause of action, at the same rate of interest as stated in the contract; all other judgments shall bear interest at the rate of 7.5 percent per annum, the provisions of Section 8-8-1 to the contrary notwithstanding; provided, that fees allowed a trustee, executor, administrator, or attorney and taxed as a part of the cost of the proceeding shall bear interest at a like rate from the day of entry. (b) This section shall apply to all judgments entered on and after September 1, 2011.

General maximum legal rate

Unless another law provides otherwise, Alabama's general maximum rate is $6 per $100 for one year; written-contract interest is capped at $8 per $100 for one year under this general provision.

Ala. Code § 8-8-1. Except as otherwise provided by law, the maximum rate of interest upon the loan or forbearance of money, goods, or things in action, except by written contract is $6 upon $100 for one year, and the rate of interest by written contract is not to exceed $8 upon $100 for one year and at that rate for a greater or less sum or for a longer or shorter time.

Contract breach interest accrual

Alabama contracts for payment or performance bear interest from the day the money, thing, act, or duty should have been paid or performed.

Ala. Code § 8-8-8. All contracts, express or implied, for the payment of money, or other thing, or for the performance of any act or duty bear interest from the day such money, or thing, estimating it at its money value, should have been paid, or such act, estimating the compensation therefor in money, performed.

Not certified by this page

• This receipt does not certify Alabama ERISA interest, federal postjudgment interest, escrow interest, residential security-deposit interest, tax interest, consumer-credit exceptions, usury remedies, compounding assumptions, or case-law exceptions outside the quoted sources.

Use the calculator

DocketMath's interest calculator can model interest scenarios once you identify the controlling jurisdiction, amount, rate type, and accrual date. Use the source panel for the verified source-backed rule.

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Sources

• Interest on Money Judgments and Costs — Interest on Money Judgments and Costs
• Ala. Code § 8-8-1 — Maximum Rates of Interest - Generally
• Ala. Code § 8-8-8 — Interest Accrues on Breach of Contract

All sources are official primary law published by alison.legislature.state.al.us.

Corroboration method: Official Alabama Legislature GraphQL responses for Code of Alabama sections 8-8-10, 8-8-1, and 8-8-8.