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 Florida, interest rates on judgments are governed by state law, which sets forth the rates for both prejudgment and post-judgment interest. Prejudgment interest is the interest accrued from the time of a loss or damage until the final judgment is made. Florida Statutes provide a method for calculating prejudgment interest, which is typically based on the statutory rate in effect at the time the judgment is rendered. Post-judgment interest, on the other hand, is the interest that accrues after the judgment has been entered by the court. The rate for post-judgment interest is set annually by the Florida Chief Financial Officer based on the statutory rate provided in the Florida Statutes. It is important to note that these rates can change, and the specific rate applicable to a judgment will depend on the date the judgment is entered. Attorneys handling cases involving judgments in Florida must carefully review the relevant statutes to determine the correct interest rates to apply to both prejudgment and post-judgment amounts.