Calculate loan interest rates from loan amount, tenure, and monthly installments
Our interest rate calculator helps you determine the interest rate on a loan based on the loan amount, tenure, and monthly installment. Here's how to use it:
Uses precise financial formulas to calculate interest rates based on your inputs.
Shows detailed calculations so you understand exactly how the interest rate was determined.
Displays not just the interest rate but also total payment and other relevant details.
Perfect for students learning about interest calculations and financial planning.
Works perfectly on all devices - desktop, tablet, and mobile.
Completely free with no hidden costs or limitations.
The interest rate is calculated using the formula: Interest Rate = ((Monthly Installment × Loan Tenure) / Loan Amount) × (12 / Loan Tenure) × 100. This formula converts the total interest paid over the loan term into an annual percentage rate.
A flat interest rate is calculated on the original loan amount throughout the tenure, while a reducing balance rate is calculated on the outstanding principal. Our calculator assumes a flat interest rate for simplicity.
Understanding the interest rate helps you compare different loan offers, calculate the true cost of borrowing, and make informed financial decisions.
Yes, this calculator works for personal loans, car loans, education loans, and other installment loans where you know the loan amount, tenure, and monthly payment.
This calculator uses a simple interest formula for monthly installments. For loans with compound interest, the calculation would be more complex.
This calculator focuses on the interest component based on the monthly installment. Additional fees like processing charges or insurance would increase the effective interest rate but aren't included in this calculation.