Alabama Prejudgment Interest Rate
United States Alabama’s prejudgment interest rate — when a court awards it.
Set by statute Fixed by statute
Alabama prejudgment interest is 6% per year, as simple interest under Ala. Code § 8-8-1. Prejudgment interest is available ONLY on liquidated / reasonably ascertainable sums.
When Alabama prejudgment interest applies
Prejudgment interest is available ONLY on liquidated / reasonably ascertainable sums. (1) Contract claims (§ 8-8-8): recoverable as of right where the amount is certain or ascertainable at the time of breach; a bona fide dispute over the amount does not defeat it if the sum is computable by known standards.
When it starts accruing
From the day the money should have been paid or the act performed (§ 8-8-8 — "from the day such money… should have been paid"), i.e., the date of breach. Noncontract/tort claims (where allowed): from the date of injury/loss, provided the property injured or destroyed has an ascertainable money value.
Simple or compound
Simple.
→ Compare with the Alabama post-judgment interest rate (interest after judgment)
Prejudgment interest under Ala. Code § 8-8-1 — 6% (simple interest). This is PREjudgment interest (accruing before entry of judgment) and is separate from Alabama’s post-judgment rate; availability is limited by claim type (see the page). Verify against the statute text. Not legal advice.
Effective-date history
| Effective date | Rate | Basis |
|---|---|---|
| July 9, 2026 | 6% | Statute |
Source & provenance
Latest value retrieved July 10, 2026 (02:55 UTC) from the official source:
https://alison.legislature.state.al.us/code-of-alabama?section=8-8-1