Interest Rate Calculator
Calculate the interest rate on a loan based on amount, term, and payment
Calculate the interest rate on a loan based on the loan amount, term, and monthly payment. This calculator helps you understand the true cost of borrowing.
Interest Rate Calculator
What is Interest Rate?
An interest rate is the amount charged by lenders for the use of money, expressed as a percentage of the principal. It represents the cost of borrowing money or the return on investment for lending money.
For example, if you borrow $100 at an 8% interest rate, you would pay $108 at year-end. The interest rate directly affects the total interest paid over the life of the loan, with borrowers generally seeking the lowest rates to minimize their total cost of borrowing.