Iowa Prejudgment Interest Rate
United States Iowa prejudgment interest — a formula rate, reset monthly.
Set by statute Formula rate
Iowa prejudgment interest is currently 6.06% per year — a statutory formula rate under Iowa Code § 668.13 that resets monthly. Prejudgment interest is broadly available on money due on judgments/decrees, including both tort/comparative-fault (§ 668.13 is in the comparative fault chapter) and contract claims (via §…
When Iowa prejudgment interest applies
Prejudgment interest is broadly available on money due on judgments/decrees, including both tort/comparative-fault (§ 668.13 is in the comparative fault chapter) and contract claims (via § 535.3), and does NOT require the claim to be liquidated in the strict sense. KEY EXCLUSIONS: (1) Future damages get NO prejudgment interest — § 668.13(4) states interest on future damages does not begin to accrue until the date of entry of judgment.
When it starts accruing
From the date of commencement of the action (i.e., when suit is filed), per § 668.13(1) — EXCEPT interest awarded for future damages, which does not begin to accrue until the date of entry of judgment (§ 668.13(4)).
Simple or compound
Simple. § 668.13(5) provides interest "shall be computed daily to the date of the payment" — daily simple accrual, not compounding (except structured/periodic non-lump-sum payments under § 668.3(7), which reflect interest per annuity…
How the rate is set
Variable: (1-year Treasury constant maturity from Fed H.15 report settled immediately prior to judgment date) + 2%. Same rate basis as post-judgment (§ 535.3(1)(a) pegs all judgment interest to § 668.13).
→ Compare with the Iowa post-judgment interest rate (interest after judgment)
Prejudgment interest under Iowa Code § 668.13 — 6.06% (simple interest). This is PREjudgment interest (accruing before entry of judgment) and is separate from Iowa’s post-judgment rate; availability is limited by claim type (see the page). Current formula value as of 2026-07-09; verify at legis.iowa.gov. Not legal advice.
Effective-date history
| Effective date | Rate | Basis |
|---|---|---|
| July 9, 2026 | 6.06% | Statute |
Source & provenance
Latest value retrieved July 10, 2026 (02:55 UTC) from the official source:
https://www.legis.iowa.gov/docs/code/668.13.pdf