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 Pennsylvania, interest rates on judgments are governed by state law. Prejudgment interest is not automatically awarded in Pennsylvania; it is typically at the discretion of the court and may be dependent on the nature of the claim. For example, in certain breach of contract cases, prejudgment interest may be recoverable from the date of the breach. Post-judgment interest, on the other hand, is statutory and accrues on the amount of the judgment from the date the judgment is entered until it is paid. As of the knowledge cutoff date, the legal rate of post-judgment interest in Pennsylvania is generally set at 6% per annum for most judgments. However, this rate can vary depending on the type of case and the specific laws applicable to it. It is important to consult the relevant Pennsylvania statutes or an attorney to determine the exact interest rate that may apply to a particular judgment.