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 Georgia, interest rates on judgments are governed by state law. Prejudgment interest is typically awarded at the discretion of the court and is intended to compensate a plaintiff for the loss of use of the money from the time of injury or loss until the judgment is made. The rate for prejudgment interest is not fixed by statute and can vary depending on the case. Post-judgment interest, on the other hand, is interest that accrues on the amount of the judgment from the time the judgment is entered until it is paid. In Georgia, the legal rate of interest for judgments is 7% per annum when the rate is not established by written contract, as per O.C.G.A. § 7-4-12. However, if the obligation to pay interest at a specific rate is established by a contract, that rate may apply instead, up to the maximum allowed by law. It is important to consult with an attorney to understand how these interest rates may apply to a specific judgment, as the calculation of interest can be complex and may be affected by various factors, including the terms of any applicable contracts and the date of the judgment.