North Carolina Prejudgment Interest Rate
United States North Carolina’s prejudgment interest rate — when a court awards it.
Set by statute Fixed by statute
North Carolina prejudgment interest is 8% per year, as simple interest under N.C. Gen. Stat. 24-5. Prejudgment interest is claim-type-restricted, not universal.
When North Carolina prejudgment interest applies
Prejudgment interest is claim-type-restricted, not universal. CONTRACT actions (G.S. 24-5(a)): the amount awarded on the contract bears prejudgment interest from date of breach; the fact finder must separate principal from interest. Excludes penal bonds (G.S. 24-5(a1)), which bear interest only from entry of judgment. NON-CONTRACT / TORT actions (G.S.
When it starts accruing
From the DATE OF BREACH (G.S. 24-5(a)). Non-contract/tort actions: the compensatory-damages portion accrues from the DATE THE ACTION IS COMMENCED (filing), not the date of injury/loss, until the judgment is satisfied (G.S. 24-5(b)).
Simple or compound
Simple (statutory legal rate applied per annum to the principal; no compounding provided by statute).
→ Compare with the North Carolina post-judgment interest rate (interest after judgment)
Prejudgment interest under N.C. Gen. Stat. 24-5 — 8% (simple interest). This is PREjudgment interest (accruing before entry of judgment) and is separate from North Carolina’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 | 8% | Statute |
Source & provenance
Latest value retrieved July 10, 2026 (02:55 UTC) from the official source:
https://www.ncleg.net/EnactedLegislation/Statutes/PDF/BySection/Chapter_24/GS_24-5.pdf