Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with over 10 years of experience in loan interest rates and financial advising.
David Chen is a Certified Financial Analyst with over 10 years of experience in loan interest rates and financial advising.
This tool helps you calculate the loan interest rate using four variables. Enter any three variables and solve for the fourth.
Loan Interest Rate Calculator
Loan Interest Rate Formula
Formula 1: F = P * (1 + V * Q)
Formula 2: P = F / (1 + V * Q)
Formula 3: V = (F / P – 1) / Q
Formula 4: Q = (F / P – 1) / V
Formula Source: Investopedia
Variables:
- F: Loan Amount
- P: Principal Amount
- V: Interest Rate
- Q: Loan Term
Related Calculators
What is Loan Interest Rate?
Loan interest rate is the percentage charged on a loan by a lender to a borrower, representing the cost of borrowing money. Understanding interest rates is crucial to evaluating the affordability of a loan.
How to Calculate Loan Interest Rate (Example)
- Step 1: Enter your loan amount, principal, interest rate, and term.
- Step 2: Select which variable you want to calculate.
- Step 3: Click “Calculate” to get the result.
Frequently Asked Questions (FAQ)
What is an interest rate? The interest rate is the cost of borrowing money, expressed as a percentage of the total loan amount.
How does the loan term affect interest rates? Longer loan terms may have lower monthly payments but will accumulate more interest over time.