1. What Is Pre Judgment Interest in California?

Pre judgment interest in California is the interest that accrues on a monetary award from the date the cause of action accrues until the date of judgment. It compensates the plaintiff for the loss of use of their money during the litigation period.

2. How Does the Calculator Work?

The calculator uses the California pre judgment interest formula:

Where:

• \( Principal \) — The original amount of money ($)
• \( Rate \) — The applicable interest rate (decimal)
• \( Days \) — The number of days interest accrues

Explanation: This formula calculates simple interest based on the principal amount, the specified interest rate, and the time period in days, converted to a fraction of a year.

3. Importance of Pre Judgment Interest Calculation

Details: Accurate calculation of pre judgment interest is crucial for ensuring proper compensation in legal disputes, accounting for the time value of money, and complying with California civil code requirements.

4. Using the Calculator

Tips: Enter the principal amount in dollars, the interest rate as a decimal (e.g., 0.10 for 10%), and the number of days. All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the legal basis for pre judgment interest in California?
A: California Civil Code § 3287 allows for pre judgment interest when the amount of damages is certain or capable of being made certain by calculation.

Q2: What interest rate should be used?
A: The rate is typically 10% per annum unless a different rate is specified by contract or statute.

Q3: How are days calculated for pre judgment interest?
A: Days are typically calculated from the date the cause of action accrued to the date of judgment, excluding the date of judgment itself.

Q4: Is pre judgment interest available in all cases?
A: No, pre judgment interest is generally available only in contract cases or when damages are certain or calculable.

Q5: How does this differ from post-judgment interest?
A: Pre judgment interest covers the period before the judgment, while post-judgment interest accrues from the date of judgment until the judgment is paid.