Payment Plan Math in California
2 min read
Published July 14, 2026 • By DocketMath Team
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Quoted from the source law itself. Not legal advice; confirm how it applies to your matter.
Current verified answer
California payment-plan-math: interest rate is 10; interest rate basis is Cal. Const. Art. XV § 1 cap for personal/family/household loans.
Run the planAuthority and key facts
- Interest Rate: 10
- Interest Rate Basis: Cal. Const. Art. XV § 1 cap for personal/family/household loans
- Max Contract Rate Formula: max(10, 5 + FRB_SF_advance_rate)
- Max Contract Rate Formula: 36 + FederalFundsRate
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.
Payment Plan Math in California
The maximum interest rate permitted on a payment plan in California is 10% per year, as set by the state constitution. This rate applies to any contract or agreement where no specific rate is stipulated, or where the parties have not otherwise agreed in writing. The rule originates from Cal. Const. Art. XV § 1, which caps the annual interest rate on loans and forbearance of money, goods, or services. When calculating interest on a payment plan, the total interest charged over the life of the plan cannot exceed this constitutional limit. The exact statutory language and any applicable exceptions are detailed in the official source linked below. For a specific payment plan estimate, use the calculator to compute your own result.
Governing authority
In California, the payment plan math rule is set by Cal. Const. Art. XV § 1. The verified packet cites Cal. Const. Art. XV § 1 (https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=CONS&division=&title=&part=&chapter=&article=XV).
California payment plan math: the verified value is 10% under Cal. Const. Art. XV § 1. The verified packet cites Cal. Const. Art. XV § 1 (https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=CONS&division=&title=&part=&chapter=&article=XV).
Estimate your own result: every situation has exceptions that can change the outcome. Use the payment plan math 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.