Arizona Prejudgment Interest Rate
United States Arizona prejudgment interest — a formula rate, reset periodically.
Set by statute Formula rate
Arizona prejudgment interest is currently 7.75% per year — a statutory formula rate under A.R.S. § 44-1201(A), & that resets periodically. Prejudgment interest is available ONLY on LIQUIDATED / readily-ascertainable claims — a claim is liquidated if the plaintiff provides a basis for precisely calculating the amount owed.
When Arizona prejudgment interest applies
Prejudgment interest is available ONLY on LIQUIDATED / readily-ascertainable claims — a claim is liquidated if the plaintiff provides a basis for precisely calculating the amount owed. A.R.S. 44-1201(F) EXPRESSLY BARS a court from awarding prejudgment interest on (1) unliquidated damages, (2) future damages, (3) punitive damages, and (4) exemplary damages found by the trier of fact.
When it starts accruing
Prejudgment interest accrues from the date the claim becomes liquidated / due and demandable — i.e., the date the amount owed became certain or capable of precise calculation (for a liquidated debt, typically the date of the demand or the date payment was due). It runs until entry of judgment.
Simple or compound
Simple — Arizona applies simple (non-compounding) interest to judgments/prejudgment interest absent a written agreement providing otherwise.
How the rate is set
Lesser of 10%/year or (1% + prime rate published in Federal Reserve statistical release H.15). Prime is currently 6.75%, so the applicable rate is 6.75% + 1% = 7.75%.
→ Compare with the Arizona post-judgment interest rate (interest after judgment)
Prejudgment interest under A.R.S. § 44-1201(A), & — 7.75% (simple interest). This is PREjudgment interest (accruing before entry of judgment) and is separate from Arizona’s post-judgment rate; availability is limited by claim type (see the page). Current formula value as of 2026-07-08; verify at azleg.gov. Not legal advice.
Effective-date history
| Effective date | Rate | Basis |
|---|---|---|
| July 8, 2026 | 7.75% | Statute |
Source & provenance
Latest value retrieved July 10, 2026 (02:55 UTC) from the official source:
https://www.azleg.gov/ars/44/01201.htm