Carmody, one of the most accurate field goal kickers in the nation, made more than 90 percent of his kicks this season, helping Louisville to the Big East title and a BCS berth in next month's FedEx Orange Bowl.
Carmody was 20-of-23 in field goals this season with a long of 51-yards and scored 110 points on the season.
Carmody becomes the second major award winner for Louisville the past two years. Last season, defensive end Elvis Dumervil won the Bronko Nagurski Award, given each year to the nation's top defensive player.
Carmody was selected over Auburn's John Vaughn and Garrett Hartley from Oklahoma. Voters for the award include Division I-A head coaches, sports writers and sportscasters, conference representatives, professional kickers, and previous Groza Award finalists.