California Prejudgment Interest Rate
United States California prejudgment interest — a formula rate, reset periodically.
Set by statute Formula rate
California prejudgment interest is currently 10% per year — a statutory formula rate under Cal. Civ. Code sec. 3287 that resets periodically. Prejudgment interest is NOT automatic on all claims.
When California prejudgment interest applies
Prejudgment interest is NOT automatic on all claims. MANDATORY (as of right) only where damages are "certain, or capable of being made certain by calculation" and the right vested on a particular day — i.e., liquidated/readily ascertainable claims (Civ. Code sec. 3287(a)). UNLIQUIDATED tort claims: interest is BARRED as of right; it is DISCRETIONARY with the jury, and only in actions for breach of a non-contract obligation or cases of oppression, fraud, or malice (Civ. Code sec. 3288).
When it starts accruing
For mandatory liquidated claims (sec. 3287(a)): from the day the right to recover vested / damages became certain (e.g., date of loss or breach). For contract default 10% (sec. 3289(b)): from the date of breach. For discretionary unliquidated contract interest (sec. 3287(b)): from a date fixed by the court, but no…
Simple or compound
Simple. California prejudgment interest is computed as simple interest; compounding is not authorized absent a contract term providing for it.
How the rate is set
Fixed statutory/constitutional percentages, not a published index. Contract w/o stipulated rate (post-1/1/1986): 10%/yr simple (Civ. Code 3289(b)). Other liquidated claims / discretionary tort: 7%/yr simple (Cal. Const. art. XV sec. 1).
→ Compare with the California post-judgment interest rate (interest after judgment)
Prejudgment interest under Cal. Civ. Code sec. 3287 — 10% (simple interest). This is PREjudgment interest (accruing before entry of judgment) and is separate from California’s post-judgment rate; availability is limited by claim type (see the page). Current formula value as of 2026-07-09; verify at leginfo.legislature.ca.gov. Not legal advice.
Effective-date history
| Effective date | Rate | Basis |
|---|---|---|
| July 9, 2026 | 10% | Statute |
Source & provenance
Latest value retrieved July 10, 2026 (02:55 UTC) from the official source:
https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=3289.&lawCode=CIV