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 Ohio, 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 party for the loss of use of money due to another party's wrongful conduct, from the time of the wrongdoing to the time of the judgment. Ohio Revised Code Section 1343.03(A) allows for prejudgment interest in certain civil actions, and the rate is typically determined by the court and can vary depending on the circumstances of 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 by the court until the judgment is paid. In Ohio, the post-judgment interest rate is set by Ohio Revised Code Section 1343.03(C), and it is calculated at a rate equal to the federal short-term rate (as defined in Section 1274 of the Internal Revenue Code) plus three percent, and it is adjusted annually. Attorneys handling cases in Ohio must carefully analyze these statutes to determine the correct application of interest rates to judgments.