Interest rates are compensation for the time-value of money, and are calculated on judgments (the amount of money one party to a lawsuit is ordered to pay another party) based on the applicable state or federal statutes. There are often different interest rates set by law for prejudgment interest (the interest on the amount owed before the judgment) and post-judgment interest (the interest on the amount owed after the judgment). The calculation of prejudgment and post-judgment interest rates vary from state to state (and in federal court), and require a careful analysis of the statutes.

In Arkansas, interest rates on judgments are governed by state statutes. Prejudgment interest is the interest that accrues from the time the money is owed until a judgment is entered. In Arkansas, prejudgment interest is typically allowed if the amount owed is liquidated or ascertainable by calculation, and the rate is often set by statute or by the contract between the parties if one exists. Post-judgment interest is the interest that accrues after a judgment has been entered by the court. According to Arkansas Code Annotated § 16-65-114, the legal rate of interest on judgments is 6% per annum unless the judgment is based on a written contract specifying a different rate. However, if the judgment is based on a contract or statute that specifies a different rate of interest, that rate will apply. It's important to note that these rates can be subject to change through legislative action, and an attorney can provide the most current information and guidance on calculating interest on judgments in Arkansas.