New Jersey Prejudgment Interest Rate
United States New Jersey prejudgment interest — the same rate as its post-judgment interest.
Set by statute Same rate as post-judgment
New Jersey applies the same rate to prejudgment interest as to post-judgment interest — currently 4.5% per year under N.J. Ct. R. 4:42-11(b). Rule 4:42-11(b) prejudgment interest is MANDATORY in TORT actions, including products liability actions ("the court shall…
When New Jersey prejudgment interest applies
Rule 4:42-11(b) prejudgment interest is MANDATORY in TORT actions, including products liability actions ("the court shall… include in the judgment simple interest"). CRITICAL EXCLUSION: prejudgment interest is NOT allowed on any recovery for FUTURE economic losses.
When it starts accruing
From the date of institution of the action, OR from a date 6 months after the date the cause of action arises, whichever is LATER (R. 4:42-11(b)). Court may suspend the running in exceptional cases.
Simple or compound
Simple.
How the rate is set
Same as post-judgment rate. Base rate = average rate of return of the NJ Cash Management Fund for the preceding fiscal year (ending June 30), rounded to the nearest whole or one-half percent, not less than 0.25% (R. 4:42-11(a)(ii)).
→ Compare with the New Jersey post-judgment interest rate (interest after judgment)
Prejudgment interest under N.J. Ct. R. 4:42-11(b) — 4.5% (simple interest). This is PREjudgment interest (accruing before entry of judgment) and is separate from New Jersey’s post-judgment rate; availability is limited by claim type (see the page). Current formula value as of 2026-01-01; verify at njcourts.gov. Not legal advice.
Effective-date history
| Effective date | Rate | Basis |
|---|---|---|
| January 1, 2026 | 4.5% | Statute |
Source & provenance
Latest value retrieved July 10, 2026 (02:55 UTC) from the official source:
https://www.njcourts.gov/sites/default/files/courts/civil/postprejudgmentrates.pdf