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 Connecticut, interest rates on judgments are governed by state statutes. Prejudgment interest is typically awarded from the date the action is brought to the date of the judgment to compensate the plaintiff for the loss of use of the money during the litigation process. The rate for prejudgment interest in Connecticut is not fixed by statute and may be determined by the court, often based on equitable principles and the circumstances of the case. Post-judgment interest, on the other hand, is interest that accrues on the amount of the judgment from the date the judgment is entered until the judgment is paid. In Connecticut, the post-judgment interest rate is set by statute. As of the knowledge cutoff in 2023, the rate is generally 10% per annum or the rate of interest applicable to the judgment debtor's debt, whichever is higher, unless a different rate is contracted for or otherwise provided by law. It is important to consult the latest Connecticut statutes or an attorney for the most current rates and to understand how these interests are applied to a specific case.