Loan Interest Rate Calculator
Find the yearly interest rate hidden in a loan when you know the amount, the EMI and the number of months.
- Total interest
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- Total payment
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An estimate only; confirm the actual rate with the lender.
What is the Loan Interest Rate Calculator?
This loan interest rate calculator works backwards from a loan amount, an EMI and a number of months to find the yearly interest rate the instalments imply. It also shows the total interest and total payment, which helps you check whether an offer is as cheap as it looks.
How it works
The EMI for a rate r is P x r x (1 + r)^n divided by ((1 + r)^n - 1), with r as the monthly rate. The calculator tries rates between zero and a high limit, halving the range repeatedly, until the EMI it computes matches yours. If total payments do not exceed the loan, the rate shows zero.
How to use it
- Enter the loan amount you receive.
- Enter the EMI you are asked to pay each month.
- Enter the number of months.
- Read the implied yearly rate, total interest and total payment.
Loan Interest Rate Calculator — FAQ
Why would I need to find the rate?
Some offers quote only an EMI or a flat rate. Working out the yearly rate lets you compare them with offers that quote a standard rate.
What if the rate shows zero?
Either the EMIs add up to no more than the loan, or an input is blank. Check the loan, EMI and months.
Does the result include fees?
Only if you reduce the loan amount by the fees you pay upfront. Enter the net amount received to see the effective rate.