Interest Rate Calculator

Work out the real interest rate on a fixed-term loan when a dealer or lender only gives you the monthly payment and total price — not the rate itself.

years months

Why the rate isn't always disclosed upfront

Some lenders and dealers structure an offer entirely around the monthly payment and total price, without stating the interest rate directly — sometimes just for simplicity, sometimes because a payment-focused pitch is easier to sell than a rate-focused one. Either way, the rate is fully determined by the loan amount, term, and payment; it's just a matter of solving for it instead of being told it outright.

Why this matters for comparing offers

A monthly payment alone can't tell you whether a deal is good — a lower payment stretched over a longer term can hide a worse rate. Working out the actual rate lets you compare two offers on equal footing, the same way APR lets you compare loans with different fee structures.

This calculator assumes a standard, fully-amortizing loan with equal monthly payments and no fees. If the loan includes points, origination fees, or other upfront costs, the APR Calculator is the more accurate tool for finding the true cost.

Common questions

What if my monthly payment doesn't fully pay off the loan?

Then there's no finite positive interest rate that fits — the payment has to be large enough to eventually retire the full loan amount within the given term for a rate to exist.

Does this work for any type of loan?

Yes, as long as it's a standard fixed-rate, fixed-term loan with equal monthly payments — auto loans, personal loans, and most installment loans all fit this pattern.

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