Looking for a how to find the interest rate on a loan? This free tool gives you works out the APR-style rate from loan amount, term and payment. Just enter your numbers and press Calculate — results are instant.
Sometimes you know the loan amount, the term and the monthly payment, but not the rate — for example when a lender quotes a payment without showing the rate clearly. There is no simple formula that gives the rate directly, so this calculator finds it by trial and error: it tests rates until the standard loan formula produces exactly your monthly payment. If your total payments are less than the loan amount, no rate exists, and the calculator will tell you the payment is too low.
Example: Loan amount $10,000 · Term 5 years · Monthly payment $212.47
Interest Rate: 10.00%
To check a lender's quote. If someone offers you a loan and only tells you the monthly payment, this calculator reveals the true yearly rate hidden inside it — so you can compare offers fairly.
The interest rate is the cost of borrowing the money. APR (annual percentage rate) also includes lender fees, so it is usually slightly higher and is the better number for comparing loans.
Your total payments must be more than the loan amount, because interest is added on top. If the monthly payment times the number of months is less than what you borrowed, no interest rate can make the maths work.