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 New Jersey, interest rates on judgments are governed by state statutes, which set forth the rates for both prejudgment and post-judgment interest. Prejudgment interest is designed to compensate a plaintiff for the loss of use of money from the time of a loss until the judgment is made. The rate for prejudgment interest is generally at the discretion of the court and can be based on equitable principles. 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 in New Jersey is set by the New Jersey Court Rules and is typically tied to the average rate of return on the state's cash management fund, subject to certain minimums. It is important to consult the specific statutes and court rules to determine the applicable interest rates for a particular judgment, as these rates can change and may be updated periodically.