Someone owes you money? Calculate exactly how much interest has accrued on a judgment debt or unpaid invoice — day by day, at the 5% court rate or your contract rate — before you send a letter of demand.
Default 5% — the current post-judgment rate under the Rules of Court 2012. Replace with your contractual rate if the agreement states one.
Judgment date, invoice due date, or date fixed by the contract.
When a Malaysian court gives judgment for a sum of money, post-judgment interest runs on the judgment sum until it is paid. The rate is set by practice direction under Order 42 rule 12 of the Rules of Court 2012, and is currently 5% per annum. The court may also award pre-judgment interest from the date the cause of action arose or the date the writ was filed.
For unpaid invoices and loans between businesses or individuals, the contract governs: if your agreement states a late payment interest rate, that rate applies (subject to it not being a penalty). If the contract is silent, you generally cannot charge interest before judgment unless a statute or trade custom allows it — but you can still claim the debt and ask the court to award interest.
Quantifying interest makes a letter of demand far more persuasive: a debtor who sees the amount growing daily has a concrete reason to settle. State the principal, the rate, the start date, and the daily accrual. Our lawyers issue letters of demand and file recovery actions for SMEs and individuals — a properly framed demand often recovers the debt without court proceedings.
This tool gives you the numbers. Our lawyers in Cheras, Selangor can advise on your specific situation. Free legal advice and quote via WhatsApp.
WhatsApp Us NowThe post-judgment interest rate is currently 5% per annum, set by practice direction under Order 42 rule 12 of the Rules of Court 2012. It runs on the judgment sum from the date of judgment until full payment, unless the court orders otherwise.
Yes, if your contract, quotation, or terms of trade provide for late payment interest — that agreed rate applies. If there is no agreed rate, interest generally only starts running when the court awards it, so well-drafted payment terms matter.
Court-awarded interest is simple interest unless the contract validly provides for compounding. This calculator uses simple interest: principal × rate × days ÷ 365.
An action on a judgment must be brought within 12 years under the Limitation Act 1953, but arrears of judgment interest are only recoverable for 6 years. Enforcement methods include writ of seizure and sale, garnishee proceedings, judgment debtor summons, and bankruptcy or winding-up.
No. A letter of demand does not stop time running — only filing the action in court does (or a written acknowledgment or part payment by the debtor, which restarts time for some claims). Do not sit on a debt close to the 6-year mark.
This tool provides general information based on current Malaysian legislation and publicly available figures. It is not legal advice and does not create a solicitor-client relationship. Figures may change; verify with the relevant authority or consult a lawyer for your specific circumstances.