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 Minnesota, interest rates on judgments are governed by state statutes, which set forth the rates for both prejudgment and post-judgment interest. Prejudgment interest refers to the interest accrued from the time the money is owed until a judgment is entered, while post-judgment interest accrues from the time the judgment is entered until the amount is paid. As of the knowledge cutoff in 2023, Minnesota Statutes Section 549.09 specifies that prejudgment interest is calculated from the time of the commencement of the action or a demand for arbitration, or the time of a written notice of claim, whichever is earliest. The rate of prejudgment interest is determined by the statute and may vary. Post-judgment interest is also set by statute and accrues from the date of the entry of the judgment until it is paid. The rates are subject to change, so it is important to consult the current statutes or an attorney for the most up-to-date information. Additionally, different rates may apply depending on whether the judgment is a result of a contract with a different stipulated rate of interest.