Tennessee Prejudgment Interest Rate
United States Tennessee prejudgment interest is discretionary — here is the rate courts apply.
Set by statute Discretionary
In Tennessee, prejudgment interest is discretionary: a court may award it, and when it does the rate is 10% per year under Tenn. Code Ann. § 47-14-123. Discretionary, not mandatory — awarded "in accordance with the principles of equity." NOT limited to contract claims: available for both contract and tort/other actions, but the key…
When Tennessee prejudgment interest applies
Discretionary, not mandatory — awarded "in accordance with the principles of equity." NOT limited to contract claims: available for both contract and tort/other actions, but the key equitable factors are (1) whether the amount of the obligation is CERTAIN or ascertainable (existence and amount reasonably ascertainable by accepted standards of valuation), and (2) whether the defendant was reasonably able to know the amount owed. Uncertain/unliquidated or highly disputed damages weigh against an award.
When it starts accruing
Discretionary as to accrual date; typically runs from the date the underlying obligation/claim became due and the amount was ascertainable (e.g., date of breach or date the debt was owed) up to the date of judgment. The court sets the accrual start based on equity; the statute does not fix a rigid accrual date.
Simple or compound
Simple interest only — Tennessee case law holds statutorily awarded prejudgment interest under § 47-14-123 is simple, not compound.
→ Compare with the Tennessee post-judgment interest rate (interest after judgment)
Prejudgment interest under Tenn. Code Ann. § 47-14-123 — 10% (simple interest). This is PREjudgment interest (accruing before entry of judgment) and is separate from Tennessee’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 | 10% | Statute |
Source & provenance
Latest value retrieved July 10, 2026 (02:55 UTC) from the official source:
https://codes.findlaw.com/tn/title-47-commercial-instruments-and-transactions/tn-code-sect-47-14-123/