Indiana prejudgment interest rate
United States Indiana prejudgment interest is discretionary — here is the rate courts apply.
→ All Indiana judgment & prejudgment interest rates
Fixed by statute Discretionary
2026 Indiana prejudgment interest at a glance
- Current rate
- 8% per year
- Effective date
- July 9, 2026
- Controlling authority
- IC 24-4.6-1-103 (8% contract/account); IC 34-51-4-9 (tort, 6–10% discretionary)
- Rate basis
- Fixed by statute
- Source checked
- July 9, 2026
- Recorded history
- 1 data point
In Indiana, prejudgment interest is discretionary: a court may award it, and when it does the rate is 8% per year under Contract/liquidated: IC 24-4.6-1-103.
When Indiana prejudgment interest applies
CONTRACT/liquidated money claims (IC 24-4.6-1-103): prejudgment interest at 8% is available AS A MATTER OF RIGHT (not discretionary) only where damages are complete and ascertainable as of a fixed time by fixed rules of evidence/known standards of value (common-law Roper rule) — i.e., liquidated/readily-computable sums (written instruments not specifying a rate, accounts stated, closed accounts, money had and received). Unliquidated damages requiring judgment/discretion to fix the amount do NOT qualify.
When it starts accruing
Contract (IC 24-4.6-1-103): accrues from the date money became due / date of demand — e.g., date of settlement on money due on a written instrument without a stated rate, or the date an itemized bill was rendered and payment demanded on accounts stated/closed accounts/money had and received.
Simple or compound
Simple. Tort statute (IC 34-51-4-9) expressly requires the court to compute prejudgment interest "at the simple rate." Contract-claim prejudgment interest (IC 24-4.6-1-103, 8%) is likewise applied as simple interest.
→ Compare with the Indiana post-judgment interest rate (interest after judgment)
Indiana prejudgment interest is 8% for contract, written-instrument, and account claims (IC 24-4.6-1-103). SEPARATELY, tort/personal-injury prejudgment interest is set at the court's discretion within a 6%–10% per-year band (simple) under IC 34-51-4-9 — the 8% figure does not apply to tort claims. Verified 2026-07-11. Not legal advice.
Current recorded observation
| Effective date | Rate | Basis |
|---|---|---|
| July 9, 2026 | 8% | Statute |
Source & provenance
Observation recorded July 9, 2026 (00:00 UTC) from the cited source (Indiana — iga.in.gov):
https://iga.in.gov/laws/2024/ic/titles/24#24-4.6-1-103
Cite this page
StatuteRates. “Indiana Prejudgment Interest Rate.” StatuteRates.com. Accessed today. https://statuterates.com/rates/indiana-prejudgment-rate/ Rate recorded under IC 24-4.6-1-103 (8% contract/account); IC 34-51-4-9 (tort, 6–10% discretionary), effective July 9, 2026.