Interest Rate Calculator
Calculate the real interest rate on loans with fixed terms and monthly payments
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Enter loan details to calculate the interest rate
About Interest Rate Calculator
The Interest Rate Calculator determines real interest rates on loans with fixed terms and monthly payments. For example, it can calculate interest rates in situations where car dealers only provide monthly payment information and total price without including the actual rate on the car loan.
What is Interest Rate?
Interest rate is the amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal, or original amount borrowed. It can also be described alternatively as the cost to borrow money. For instance, an 8% interest rate for borrowing $100 a year will obligate a person to pay $108 at year-end.
How to Use This Calculator
- Enter the total loan amount
- Specify the loan term in years and months
- Input the monthly payment amount
- Click "Calculate Interest Rate" to see the result