Interest Rate Calculator

Solve for the interest rate on a loan when you know the amount, the monthly payment, and the term. Reverse-engineer the rate behind any fixed loan or financing offer.

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Interest Rate Calculator

Find the rate from the payment

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Annual Interest Rate
Total Paid
Total Interest
Principal vs Interest

Reverse-Engineering a Loan's Interest Rate

Sometimes you know the loan amount, the monthly payment, and the term, but not the interest rate — for example, when a dealer or lender quotes only a payment. This calculator solves the amortization equation backward to find the annual interest rate that produces that exact payment. It's the inverse of a normal loan calculator and is useful for checking quotes, comparing financing offers, and spotting hidden costs baked into a "low monthly payment."

For the math to work, the monthly payment must be high enough to repay the loan over the term — at minimum the loan amount divided by the number of months (which corresponds to a 0% rate). If the payment is lower than that, no positive interest rate can amortize the loan, and the calculator will flag it. Once solved, it also shows your total amount paid and total interest.

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Solve the Rate

Enter loan amount, monthly payment, and term to find the implied annual interest rate behind a quoted payment.

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Check Quotes

Dealers often quote a payment, not a rate. Reverse-solving reveals the real rate so you can compare and negotiate.

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Minimum Payment

The payment must exceed loan ÷ months (the 0% case). Below that, the loan can't be repaid and no rate exists.

FAQ

There's no simple closed-form solution, so it's solved iteratively: find the rate that makes the standard loan-payment formula produce the exact monthly payment you entered, given the loan amount and term. This calculator does that search automatically and returns the annual rate.
If your monthly payment is less than the loan amount divided by the number of months, even a 0% loan couldn't be repaid in the term — so no positive interest rate exists. Increase the payment, lengthen the term, or lower the loan amount.
Not quite. This finds the note interest rate implied by your payment. APR additionally folds in fees and closing costs to show the all-in borrowing cost. If your loan has fees, use the APR Calculator for the true cost.

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✔ Reviewed by the True Value Calc editorial team🗓 Last updated June 2026📚 Sources: Freddie Mac PMMS, Consumer Financial Protection Bureau