> 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.

# Interest in Alabama

Under Alabama law, the judgment interest rate is set at 7.5 percent per year, as established by Ala. Code § 8-8-10. This rate applies from the date the judgment is entered until it is fully satisfied and does not distinguish between different types of judgments, applying uniformly to all civil judgments. The method for calculating the accrual over time is defined in the code, and the calculator on this page applies that formula automatically. A worked example below demonstrates how the 7.5 percent rate is applied to a judgment amount. To estimate the interest on a specific judgment, use the DocketMath calculator.

## Interest calculation example

For a Alabama this interest calculation, use the verified rate from the current rule packet: **7.5%**. The verified packet cites Ala. Code § 8-8-10 (https://law.justia.com/codes/alabama/title-8/chapter-8/section-8-8-10/).

Example inputs:
- Principal: $10,000
- Days in calculation period: 365

Calculation:
- Convert the rate to a decimal: 7.5% = 0.075
- Multiply principal by the rate and the day fraction.
- Example interest: **$750.00**

This example is generated from verified packet facts. Confirm compounding, judgment date, and case-specific accrual before relying on the amount.

## Interest calculation example

For a Alabama this interest calculation, use the verified rate from the current rule packet: **7.5%**. The verified packet cites Ala. Code § 8-8-10 (https://law.justia.com/codes/alabama/title-8/chapter-8/section-8-8-10/).

Example inputs:
- Principal: $10,000
- Days in calculation period: 365

Calculation:
- Convert the rate to a decimal: 7.5% = 0.075
- Multiply principal by the rate and the day fraction.
- Example interest: **$750.00**

This example is generated from verified packet facts. Confirm compounding, judgment date, and case-specific accrual before relying on the amount.

**Estimate your own result:** every situation has exceptions that can change the outcome. Use the interest 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._


Under Alabama law, the judgment interest rate is set at 7.5 percent per year, as established by Ala. Code § 8-8-10. This rate applies from the date the judgme

Interest in Alabama

CRITICAL: Judgment rate in prior rule file showed 12% — that was the pre-2011 rate. Current rate under Ala. Code § 8-8-10 is 7.5% (flat, post-Act 2011-684).

(9) in the event that the purchase of an insurance contract or insurance annuity in connection with termination of an individual’s status as a participant covered under a pension plan with respect to all or any portion of the participant’ s pension benefit under such plan constitutes a violation of part 4 of this title [1] or the terms of the plan, by the Secretary, by any individual who was a participant or beneficiary at the time of the alleged violation, or by a fiduciary, to obtain appropriate relief, including the posting of security if necessary, to assure receipt by the participant or beneficiary of the amounts provided or to be provided by such insurance contract or annuity, plus reasonable prejudgment interest on such amounts;

Interest shall be allowed on any money judgment in a civil case recovered in a district court... Such interest shall be calculated from the date of the entry of the judgment, at a rate equal to the weekly average 1-year constant maturity Treasury yield.

(g) Attorney’s fees and costs; awards in actions involving delinquent contributions (1) In any action under this subchapter (other than an action described in paragraph (2)) by a participant, beneficiary, or fiduciary, the court in its discretion may allow a reasonable attorney’s fee and costs of action to either party.

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.

Act 2011-684 amended Ala. Code § 8-8-10 effective September 1, 2011, reducing the post-judgment interest rate from 12% to 7.5% per annum for all non-contract judgments.

Section 8-8-10 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.

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.

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.

Any person or persons, corporations, trust, general partnership or partnerships, limited partnership or partnerships, or association may agree to pay such rate or rates of interest for the loan or forbearance of money and for any credit sales as such person, corporation, trust, general partnership, limited partnership, or association may determine, notwithstanding any law of this state otherwise prescribing or limiting such rate or rates of interest; provided, that the original principal balance of the loan or forbearance of money or credit sales is not less than $2,000; provided further, that all laws relating to unconscionability in consumer transactions including but not limited to the provisions of Chapter 19 of Title 5, known as the Mini-Code, shall apply to transactions covered by this section.

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.

the rate of interest by written contract is not to exceed $8 upon $100 for one year.

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.

A landlord may not demand or receive security, however denominated, in an amount or value in excess of one month's periodic rent... Upon termination of the tenancy, property or money held by the landlord as security may be applied to the payment of accrued rent and the amount of damages which the landlord has suffered by reason of the tenant's noncompliance with Section 35-9A-301, all as itemized by the landlord in a written notice delivered to the tenant together with the amount due 35 days after termination of the tenancy and delivery of possession.

(a) A landlord may not demand or receive money as security, in an amount in excess of one month’s periodic rent, except for pets, changes to the premises, or increased liability risks to the landlord or premises, for tenant’s obligations under a rental agreement.
(b) Upon termination of the tenancy, money held by the landlord as security may be applied to the payment of accrued rent and the amount of damages that the landlord has suffered by reason of the tenant’s noncompliance with Section 35-9A-301 all as itemized by the landlord in a written notice delivered to the tenant together with the amount due 60 days after termination of the tenancy and delivery of possession.
(c) If the landlord does not refund the entire deposit, the landlord, within the 60-day period, shall provide the tenant an itemized list of amounts withheld.
(d) Upon vacating the premises, the tenant shall provide to the landlord a valid forwarding address, in writing, to which the deposit or itemized accounting, or both, may be mailed. If the tenant fails to provide a valid forwarding address, the landlord shall mail, by first class mail, the deposit or itemized accounting, or both, to the last known address of the tenant or, if none, to the tenant at the address of the property. Any deposit unclaimed by the tenant as well as any check outstanding shall be forfeited by the tenant after a period of 90 days.
(e) The landlord’s mailing by first class mail to the address provided in writing by the tenant, within 60 days of the refund or itemized accounting, or both, is sufficient compliance with this chapter.
(f) If the landlord fails to mail a timely refund or accounting within the 60-day period, the landlord shall pay the tenant double the amount of the tenant’s original deposit.
(g) This section does not preclude the landlord or tenant from recovering other damages to which the landlord or tenant may be entitled.
(h) The holder of the landlord’s interest in the premises at the time of the termination of the tenancy is bound by this section.

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. This section shall apply to all judgments entered on and after September 1, 2011.

For Alabama interest pages, use Ala. Code § 8-8-10 for money-judgment interest, Ala. Code § 8-8-1 for general maximum legal and written-contract rates, and Ala. Code § 8-8-8 for contract breach interest accrual.

Interest in Alabama

Current verified answer

Authority and key facts

Interest in Alabama

Interest calculation example

Interest calculation example