Pre and Post Judgment Interest Analysis Matrix

This by state Interest Matrix was developed in conjunction with the practice aid entitled Discount Rates, Risk, and Uncertainty in Economic Damages Calculations.  Its purpose is to address interest- related considerations that may be encountered while performing economic damages calculations, including:

  • Prejudgment Interest - A rate of interest applied to an award in litigation to compensate for the use of monies between a date before trial (for example, the date of the alleged harmful event or filing of a complaint) and the judgment date.

  • Post-Judgment Interest - A rate of interest applied to an award in litigation to compensate for the use of monies from the judgment date until payment is received.

This non-authoritative guidance is intended to aid practitioners in the selection of an applicable rate for either or both of these measures.  It should not be considered legal advice and practitioners should communicate with counsel as to the applicability of interest, the appropriateness of the selected rate, the time period for which interest is computed, and the method in which interest is calculated and applied (for example, whether on a simple or compound basis).  Further, in a breach of contract matter, this matrix should not be viewed as a substitute for a rate of interest specified in the contract.
These interest rates are presented state-by-state.  While we anticipate that this matrix will be updated at least annually, it is current at least as of the Last Updated date reflected in the matrix.  If you identify any discrepancies in the provided information, we encourage you to notify the AICPA Staff at bandrews@aicpa.org .

The following example provides an illustration of these concepts with the following assumptions (see also Figure 6.1 of the above-referenced practice aid):

These assumptions may be implemented as follows: 

FVS pre-judgment image