Georgia Prejudgment Interest Rate
United States Georgia’s prejudgment interest rate — when a court awards it.
Set by statute Fixed by statute
Georgia prejudgment interest is 7% per year, as simple interest under O.C.G.A. § 7-4-15. Award depends entirely on claim type. LIQUIDATED demands (OCGA 7-4-15): prejudgment interest at 7% is MANDATORY, awarded as a matter of law, when the sum owed is fixed or certain by…
When Georgia prejudgment interest applies
Award depends entirely on claim type. LIQUIDATED demands (OCGA 7-4-15): prejudgment interest at 7% is MANDATORY, awarded as a matter of law, when the sum owed is fixed or certain by agreement or otherwise; it is NOT available where a genuine question of fact remains as to the amount owed (then the demand is unliquidated and 7-4-15 interest is not authorized).
When it starts accruing
LIQUIDATED (7-4-15): interest runs from the time the party became liable and bound to pay (if payable on demand, from the time of demand; for demand promissory notes, from date).
Simple or compound
Simple. OCGA 7-4-2 specifies the 7% legal rate as simple interest; Georgia courts hold prejudgment interest is calculated as simple, not compound, interest.
→ Compare with the Georgia post-judgment interest rate (interest after judgment)
Prejudgment interest under O.C.G.A. § 7-4-15 — 7% (simple interest). This is PREjudgment interest (accruing before entry of judgment) and is separate from Georgia’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 | 7% | Statute |
Source & provenance
Latest value retrieved July 10, 2026 (02:55 UTC) from the official source:
http://ga.elaws.us/law/section7-4-2