> 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 Pennsylvania

Pennsylvania law sets the legal rate of interest at 6% per year under 41 P.S. § 201 and 42 Pa.C.S. § 8101. This rate applies when a contract does not specify a different interest rate or when a court awards interest on a judgment. The statute establishes a fixed annual percentage, meaning interest accrues at that rate on the principal amount owed. The official source at the link below contains the exact statutory language. The calculator can estimate the total interest by applying this rate over the relevant time period, and the worked example further illustrates the calculation. For a result specific to your circumstances, use the calculator.

## Interest calculation example

For a Pennsylvania this interest calculation, use the verified rate from the current rule packet: **6%**. The verified packet cites 41 P.S. § 201; 42 Pa.C.S. § 8101 (https://codes.findlaw.com/pa/title-41-ps-interest/pa-st-sect-41-201/).

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

Calculation:
- Convert the rate to a decimal: 6% = 0.06
- Multiply principal by the rate and the day fraction.
- Example interest: **$600.00**

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 Pennsylvania this interest calculation, use the verified rate from the current rule packet: **6%**. The verified packet cites 41 P.S. § 201; 42 Pa.C.S. § 8101 (https://codes.findlaw.com/pa/title-41-ps-interest/pa-st-sect-41-201/).

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

Calculation:
- Convert the rate to a decimal: 6% = 0.06
- Multiply principal by the rate and the day fraction.
- Example interest: **$600.00**

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.

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_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._


Pennsylvania law sets the legal rate of interest at 6% per year under 41 P.S. § 201 and 42 Pa.C.S. § 8101. This rate applies when a contract does not specify 

Interest in Pennsylvania

(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;

Any administrator (A) who fails to meet the requirements of paragraph (1) or (4) of section 1166 2 of this title, section 1021(e)(1) of this title , section 1021(f) of this title ,, [3] section 1025(a) of this title , or section 1032(a) of this title with respect to a participant or beneficiary, or (B) who fails or refuses to comply with a request for any information which such administrator is required by this subchapter to furnish to a participant or beneficiary (unless such failure or refusal results from matters reasonably beyond the control of the administrator) by mailing the material requested to the last known address of the requesting participant or beneficiary within 30 days after such request may in the court’s discretion be personally liable to such participant or beneficiary in the amount of up to $100 a day from the date of such failure or refusal, and the court may in its discretion order such other relief as it deems proper.

It shall be unlawful for any person to discharge, fine, suspend, expel, discipline, or discriminate against a participant or beneficiary for exercising any right to which he is entitled under the provisions of an employee benefit plan, this subchapter, section 1201 of this title , or the Welfare and Pension Plans Disclosure Act [ 29 U.S.C. 301 et seq. ], or for the purpose of interfering with the attainment of any right to which such participant may become entitled under the plan, this subchapter, or the Welfare and Pension Plans Disclosure Act. It shall be unlawful for any person to discharge, fine, suspend, expel, or discriminate against any person because he has given information or has testified or is about to testify in any inquiry or proceeding relating to this chapter or the Welfare and Pension Plans Disclosure Act. In the case of a multiemployer plan, it shall be unlawful for the plan sponsor or any other person to discriminate against any contributing employer for exercising rights under this chapter or for giving information or testifying in any inquiry or proceeding relating to this chapter before Congress. The provisions of section 1132 of this title shall be applicable in the enforcement of this section.

The rate of interest shall be six percent per annum...

the maximum lawful rate of interest for the loan or use of money in an amount of fifty thousand dollars ($50,000) or less in all cases where no express contract shall have been made for a less rate shall be six per cent per annum.

The amount of interest that may be charged on escrow accounts...

Except as otherwise provided by another statute, a judgment for a specific sum of money shall bear interest at the lawful rate from the date of the verdict or award, or from the date of the judgment, if the judgment is not entered upon a verdict or award.

Sets the lawful rate referenced by 42 Pa.C.S. § 8101 at 6% per annum.

PA common-law prejudgment interest at 6%.

For over a century it has been the law of this Commonwealth that the right to interest upon money owing upon contract is a legal right.

Section 1.  Short Title.--This act shall be known and may be cited as the "Unfair Trade Practices and Consumer Protection Law."

In the case of a contract, the parties may agree to a different interest rate...

If applicable, interest shall begin to accrue from the date payment is due...

Interest shall be allowed at the rate of six percent per annum, except as otherwise provided by law.

Interest shall begin to accrue from the date the debt is due.

Whenever any money is required to be deposited in an interest-bearing escrow savings account, in accordance with section 511.1, then the lessor shall be entitled to receive as administrative expenses, a sum equivalent to one per cent per annum upon the security money so deposited, which shall be in lieu of all other administrative and custodial expenses. The balance of the interest paid shall be the money of the tenant making the deposit and will be paid to said tenant annually upon the anniversary date of the commencement of his lease.

Except as otherwise provided in this section, all funds over one hundred dollars ($100) deposited with a lessor to secure the execution of a rental agreement on residential property in accordance with section 511.1 and pursuant to any lease newly executed or reexecuted after the effective date of this act shall be deposited in an escrow account of an institution regulated by the Federal Reserve Board, the Federal Home Loan Bank Board, Comptroller of the Currency, or the Pennsylvania Department of Banking.

Any landlord who fails to provide a written list within thirty days as required in subsection (a), above, shall forfeit all rights to withhold any portion of sums held in escrow, including any unpaid interest thereon, or to bring suit against the tenant for damages to the leasehold premises.

Pennsylvania judgments bear interest at 6% per year or the contract rate, whichever is higher.

Interest in Pennsylvania

Current verified answer

Authority and key facts

Interest in Pennsylvania

Interest calculation example

Interest calculation example