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 Utah, interest rates on judgments are governed by state statutes, which set forth the rates for both prejudgment and post-judgment interest. Prejudgment interest is the interest accrued from the time the money is owed until a judgment is entered. In Utah, the prejudgment interest rate is typically determined by the contract between the parties if one exists, or by the court if there is no contract specifying the rate. Post-judgment interest refers to the interest that accrues after a judgment has been entered by the court. As of the knowledge cutoff date in 2023, Utah Code Section 15-1-4 specifies that the post-judgment interest rate is the federal post-judgment interest rate at the time of the judgment plus 2%. This rate is subject to change, so it is important to check the current statute for the most up-to-date rate. It is also important to note that the calculation of interest may involve additional factors, such as the nature of the judgment and any applicable caps on interest rates. An attorney can provide specific guidance on how these rates apply to a particular judgment.