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 Vermont, 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, and its rate can vary depending on the type of case or the specific circumstances. Post-judgment interest is the interest that accrues after a judgment has been entered by the court. As of the knowledge cutoff in 2023, Vermont law stipulates that post-judgment interest rates are set at an annual rate of 12%, unless the judgment specifies otherwise. This rate is applied to the amount of the judgment until the judgment is satisfied. It's important to note that these rates are subject to change through legislative action, and parties involved in litigation should consult the most current statutes or an attorney to obtain the latest information on interest rates applicable to judgments in Vermont.