What is statutory interest in Turkey?
Statutory interest is the rate applied when the parties have not agreed on an interest rate; it is set by Article 1 of Law No. 3095 on Statutory and Default Interest. When the debtor is in default, the creditor may claim default interest at the statutory rate unless otherwise agreed (Turkish Code of Obligations, Art. 88).
2026 statutory interest rate: 31%
The statutory rate was 9% for many years and a fixed 24% from 1 June 2024. Law No. 7589 (the 12th Judicial Package), in force since 31 July 2026, linked it to the Central Bank's discount rate: statutory interest is 80% of the short-term discount rate in force on 31 December of the previous year. If the rate on 30 June differs by at least 5 points, it applies for the second half of the year. As the discount rate on 31.12.2025 was 38.75%, the current statutory rate is 31%.
| Period | Annual statutory rate |
|---|
Interest accrues in each period at the rate in force in that period. For a claim starting in 2025, for example, 24% applies until 30 July 2026 and 31% from 31 July 2026; the calculator makes this split automatically.
Commercial interest (advance rate)
In commercial matters, if no rate was agreed, the creditor may claim default interest at the rate the Central Bank applies to short-term advance transactions (Law No. 3095, Art. 2/2). This is the advance rate on 31 December of the previous year; if the rate on 30 June differs by at least 5 points, that rate applies for the second half of the year.
| Period | Annual advance rate |
|---|
How is interest calculated?
Each period with a different rate is calculated separately and the results are added up.
Worked example
- Principal TRY 100,000, default date 01.01.2026, calculation date 22.10.2026, statutory interest.
- 01.01.2026 – 31.07.2026: 211 days × 24% → 100,000 × 0.24 × 211 ÷ 365 = TRY 13,873.97
- 31.07.2026 – 22.10.2026: 83 days × 31% → 100,000 × 0.31 × 83 ÷ 365 = TRY 7,049.32
- Total accrued interest: TRY 20,923.29 — total amount due: TRY 120,923.29
How are partial payments applied?
The debtor cannot require a payment to be applied to principal; a partial payment is applied first to accrued interest and costs, then to principal (Code of Obligations, Art. 100). Interest cannot be charged on accrued interest (Art. 388/3); interest continues to run only on the remaining principal. Exceptions such as commercial current accounts are reserved.
When does interest start?
- Debts with a fixed due date: from the due date, without the need for a notice (Art. 117/2).
- Debts without a fixed due date: from the creditor's demand (notice, enforcement proceedings or lawsuit).
- Tort compensation: as a rule, from the date of the event (damage).
- Severance pay: from the termination date, at the highest deposit rate paid by banks; as this varies by bank, it is not included in this calculator. Calculate your severance pay here.
Limits on contractually agreed interest
In civil matters, contractual default interest may not exceed the statutory rate by more than 100% (currently 62%) (Art. 88/2), and contractual (remunerative) interest may not exceed it by more than 50% (currently 46.5%) (Art. 120). In commercial matters the rate can be freely agreed (Turkish Commercial Code, Art. 8/1). The calculator checks these limits when a fixed rate is selected.
Interest in enforcement proceedings
In enforcement proceedings without a judgment, the request must state the principal, the interest accrued until the filing date and the rate of interest to run afterwards. The type of interest claimed (statutory/commercial) must match the nature of the claim, otherwise the debtor may object. The breakdown produced here can be used to prepare the accrued-interest item of the request.
Interest Calculation — Frequently Asked Questions
What is the statutory interest rate in Turkey in 2026?
From 31 July 2026 the statutory interest rate is 31% per year. Between 1 January and 30 July 2026, 24% applied.
Why did the statutory interest rate change?
Law No. 7589 amended Article 1 of Law No. 3095 and linked statutory interest to 80% of the Central Bank's discount rate on 31 December of the previous year, so the rate will now be updated each year in line with market rates.
What is the commercial (advance) interest rate for 2026?
The Central Bank advance rate applied as commercial default interest for 2026 is 39.75% per year.
Statutory or commercial interest — which applies?
If the claim is a commercial matter for both parties (e.g. a sale between two companies), commercial advance interest may be claimed. Consumer transactions, rent, compensation and debts between individuals are generally subject to statutory interest.
Can interest be charged on interest?
As a rule, no. Interest cannot be charged on accrued interest (Code of Obligations, Art. 388/3), except where the law provides otherwise, such as commercial current accounts.
Is a partial payment deducted from principal first?
No. Even if the debtor says otherwise, a partial payment is applied first to accrued interest and costs, then to principal (Art. 100).
Is a 365-day year used?
In practice interest is calculated daily by dividing the annual rate by 365 days. The calculator uses the same method.
Is a very high contractual interest rate valid?
In civil matters, annual default interest may not exceed twice the statutory rate and contractual interest one and a half times; the excess is invalid. In commercial matters the rate can be freely agreed.
Collect your claim together with interest
Request an initial consultation to structure your claim and interest correctly in formal notices, enforcement proceedings and actions for annulment of objection.
Request a consultation