Loan Interest Rate Calculator

Reverse-calculate the effective interest rate on any loan from the EMI amount, principal, and tenure.

EFFECTIVE INTEREST RATE

17.27% p.a.

Total paid: $1.50M | Total interest: $500,000

Finding the Hidden Interest Rate

Many lenders quote flat rates, processing fees, or EMI amounts without clearly disclosing the effective annual rate. This calculator uses iterative numerical methods to back-calculate the exact reducing-balance interest rate from your actual EMI, so you can compare apples-to-apples across lenders.

Example: A car dealer offers β‚Ή10L at "8% flat" for 5 years. EMI = β‚Ή18,333. The effective reducing-balance rate is actually 14.8% β€” nearly double the quoted flat rate.

Loan Interest Rate Calculator FAQ

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πŸ“˜ Key Term

Interest RateThe percentage charged by a lender on the principal amount, typically expressed as an annual percentage. Can be fixed (unchanging) or floating (linked to a benchmark rate like RBI repo rate).Read full definition β†’