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 North Carolina, interest rates on judgments are governed by state statutes. Prejudgment interest is typically awarded from the date the claim arises until the judgment is made, to compensate for the loss of use of the money during that period. The rate for prejudgment interest is set by statute and can vary depending on the type of case and the specific circumstances. Post-judgment interest, on the other hand, accrues from the date of the entry of the judgment until the judgment is paid. The rate for post-judgment interest is also established by state law. As of the knowledge cutoff date, the legal rate of interest in North Carolina is 8% per annum for both prejudgment and post-judgment interest unless a different rate is contracted for in writing. It is important to consult the most current North Carolina General Statutes or an attorney for the latest rates and to understand how these interests are applied to a specific case.