Calculation of legal interest

Verified 01 July 2023 - Legal and Administrative Information Directorate (Prime Minister)

When a court order requires a person to pay an amount and that amount is paid late, the person must pay additional legal interest.

The total amount to be paid varies according to the terms of the judgment, the date of actual payment of the sum due and the value of the statutory interest rate.

It exists 2 types of legal interests:

  • The simple statutory interest rate, which is used when the sum due is paid within 2 months following the date of application of the judgment
  • The statutory interest rate plus, which is used in other cases

Simple interests

Simple legal interests shall run from the date of the decision, unless another date is indicated in the court decision.

Legal interest is due when the sentenced person pays the sum within 2 months of the date of application of the judgment.

To calculate simple legal interest that is due, multiply the amount due by the number of days late and by the applicable legal interest rate over the period. The result obtained must then be divided by 365×100, that is to say by 36,500.

Tableau - Legal interest rate

The creditor is an individual who is not acting for professional purposes

Other cases (including creditor is a professional)

2023

2e semester

6.82%

4.22%

1er semester

4.47%

2.06%

2022

2e semester

3.15%

0.77%

1er semester

3.13%

0.76%

2021

2e semester

3.12%

0.76%

1er semester

3.14%

0.79%

2020

2e semester

3.11%

0.84%

1er semester

3.15%

0.87%

2019

2e semester

3.26%

0.87%

1er semester

3.40%

0.86%

2018

2e semester

3.60%

0.88%

1er semester

3.73%

0.89%

2017

2e semester

3.94%

0.90%

1er semester

4.16%

0.90%

2016

2e semester

4.35%

0.93%

1er semester

4.54%

1.01%

2015

2e semester

4.29%

0.99%

1er semester

4.06%

0.93%

Example :

Date of judgment: 1er september 2020

Decision: Order to pay €2,000

Time limit for application of the decision: day of the decision

Legal interest rate on 1er September 2020: 3.11% (creditor is an individual)

If the convicted person commits to pay on September 30, 2020, you get:

(2,000 x 30 x 3.11) / 36,500 = €5.11

2,000 + 5.11 = €2,005.11

Total to be paid is €2,005.11.

Remember: even if 2020 is a leap year, 36 500 should be used in the calculation.

Interest plus

Where the amount due is not paid within 2 months of the date of application of the judgment, simple statutory interest shall be paid over the period of the first 2 months. And increased interest is payable beyond these 2 months.

If the judgment is applicable immediately (provisional execution), the two-month period shall run from the date of significance of judgment.

If the judgment is applicable after a period (in the case of a judgment which may be subject to appeal or opposition), the period of two months shall run from the day on which the remedies expire.

Since 2015, the increased rate corresponds to the statutory interest rate, increased by 5 points:

Tableau - Increased statutory interest rate

The creditor is an individual who is not acting for professional purposes

Other cases (including creditor is a professional)

2023

2e semester

6.82% + 5 = 11.82%

4.22% + 5 = 9.22%

1er semester

4.47% + 5 = 9.47%

2.06% + 5 = 7.06%

2022

2e semester

3.15% + 5 = 8.15%

0.77% + 5 = 5.77%

1er semester

3.13% + 5 = 8.13%

0.76% + 5 = 5.76%

2021

2e semester

3.12% + 5 =  8.12%

0.76% + 5 = 5.76%

1er semester

3.14% + 5 = .14%

0.79% + 5 = 5.79%

2020

2e semester

3.11% + 5 =  8.11%

0.84% + 5 = 5.84%

1er semester

3.15% + 5 = 8.15%

0.87% + 5 = 5.87%

2019

2e semester

3.26% + 5 = 8.26%

0.87% + 5 = 5.87%

1er semester

3.40% + 5 = 8.40%

0.86% + 5 = 5.86%

2018

2e semester

3.60% + 5 = 8.60%

0.88% + 5 = 5.88%

1er semester

3.73% + 5 = 8.73%

0.89% + 5 = 5.89%

2017

2e semester

3.94% + 5 = 8.94%

0.90% + 5 = 5.90%

1er semester

4.16% + 5 =  9.16%

0.90% + 5 = 5.90%

2016

2e semester

4.35% + 5 = 9.35%

0.93% + 5 = 5.93%

1er semester

4.54% + 5 = 9.54%

1.01% + 5 = 6.01%

2015

2e semester

4.29% + 5 =  9.29%

0.99% + 5 = 5.99%

1er semester

4.06% + 5 = 9.06%

0.93% + 5 = 5.93%

To calculate the statutory interest payable, the amount due must be multiplied by the number of days late and by the applicable statutory interest rate for the relevant period. The result obtained must then be divided by 365×100, that is to say by 36,500.

Example :

Date of judgment: 1er September 2015, served on 17 September 2015 and becoming applicable that same day.

Decision: Order to pay €2,000

The period for the payment of simple statutory interest (first 2 months of delay) ends on 17 November 2015. Legal interest plus interest is payable from 18 November 2015.

Sentenced person agrees to pay on April 10, 2016

Simple statutory interest rate of 2d 2015 semester: 4.29% (creditor is an individual)

Statutory interest rate plus 2d 2015 semester: 9.29%

Statutory interest rate plus 1er 2016 semester: 9.54%

The amount of statutory interest due for each period must be calculated and added as follows:

  • Amount of simple statutory interest from 17 September to 17 November 2015:
    (€2,000 x 61 x 4.29) / 36,500 = €14.34
  • Amount of statutory interest plus from 18 November to 31 December 2015:
    (€2,000 x 44 x 9.29) / 36,500 = €22.40
  • Amount of statutory interest plus for 2016:
    (€2,000 x 100 x 9.54) / 36,500 = €52.27

The amount of the statutory interest is: €14.34 + €22.40 + €52.27 = €89.01

The total to be paid is: €2,000 + €89.01 = €2,089.01

Remember: even if 2016 is a leap year, 36,500 must be used in the calculation.

The judgment may provide for the capitalization of interest, i.e. the obligation to integrate interest into capital at the end of each year.

Here is an example of calculation of statutory interest with capitalizable interest (called compound statutory interest) :

Example :

Using the example above, the amount of the statutory interest due for the year 2015 must be calculated and included in the capital for the year 2016. The calculation to be made is as follows:

  • Amount of simple and increased statutory interest due for 2015:
    €14.34 + €22.40 = €36.74
  • In 2016, the amount due becomes:
    €2,000 + €36.74 = €2,036.74
  • Amount of interest due for 2016:
    (€2,036.74 x 100 x 9.54) / 36,500 = €53.23

The debtor shall repay: €2,036.74 + €53.23 = €2,089.97

Remember: even if 2016 is a leap year, 365 must be used in the calculation.