# How to Create Prejudgment Interest Calculator in Excel

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In order to input similar types of functions multiple times, we can use a calculator to define a similar formula. It will lessen the workload as well as save time. In terms of calculating the prejudgment interest in Microsoft Excel, we can also create a calculator where you just need to input the necessary parameters’ value to calculate the prejudgment interest. In this article, I am going to explain 2 simple ways to create a prejudgment interest calculator in Excel. I hope it will be helpful for you if you are looking for a simple way to calculate your prejudgment interest.

## What is Prejudgment Interest?

Prejudgment interest is the interest that accrues on a judgment before it is paid. In other words, it is the interest that is owed on a judgment from the date the judgment is entered to the date it is paid in full.

## Difference Between Prejudgment Interest and Post-judgment Interest

Prejudgment interest is interest that is earned on a financial claim before a judgment is rendered. This type of interest is typically awarded to the prevailing party in a lawsuit as a way to make up for the time value of money that was lost while the case was pending. Prejudgment interest is typically calculated using the prime rate or a similar benchmark rate.

On the other hand, Post-judgment interest is interest that accrues on a judgment after it is entered. This type of interest is typically awarded to the prevailing party in a lawsuit as a way to make up for the time value of money that was lost while the case was pending. Post-judgment interest is typically calculated using the prime rate or a similar benchmark rate.

## 2 Simple Ways to Create Prejudgment Interest Calculator in Excel

In this section, we will exhibit 2 different methods to create a prejudgment interest calculator in Excel. Let’s start!

### 1. Prejudgment Interest Calculator for Full Payment at a Time

Prejudgment interest can be paid as a full payment at a time or in installments. In the case of calculating the prejudgment interest at a time, we can follow the procedure mentioned below.

Steps:

• First of all, gather the related particulars in order to create a prejudgment interest calculator. • Next, input the following formula to find out the number of interim days.
`=DAYS(C6,C5)` • Press ENTER to have the output. • After that, input the following formula to calculate the prejudgment interest.
`=C7*C8/365*C9/100`

Here,
C7 = Judgment Amount
C8 = Interest Rate
C9 = Interim Days • Finally, press the ENTER button to have the prejudgment interest.

### 2. Prejudgment Interest Calculator for Partial Payment

Based on the amount of prejudgment interest, it can be paid in installments. For calculating the prejudgment interest, we can create a calculator maintaining the following procedures.

Steps:

• Assemble the related particulars in order to create a prejudgment interest calculator.
• Apply the following formula to calculate the number of days between the Incurred Date and the Hearing Date.
`=DAYS(C6,C5)` • Hit the ENTER button to have the number of interim days. • Along with that, find the Number of Installments considering the Number of Days to make Installment. For that, use the formula mentioned below:
`=INT(C9/C10)`

Here,
C9 = Interim Days
C10 = Number of Days to make Installment • Now, press ENTER to have the output. • After that, use the following formula to have the Prejudgment Interest/Installment:
`=C7*C8/365*C9/100/C11` • Finally, press ENTER to have the Prejudgment Interest/Installment.

## Conclusion

At the end of this article, I like to add that I have tried to explain every detail of 2 simple ways to create a prejudgment interest calculator in Excel. It will be a matter of great pleasure for me if this article could help any Excel user even a little. For any further queries, comment below.

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