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Finance

Interest Rate Calculator

Work backwards from a loan amount, payment and term to find the interest rate you are actually being charged.

Your numbers

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$

Result

Implied annual rate 10.01%
Total repaid $25,500
Total interest $5,500
Monthly rate 0.83%
Those terms imply an interest rate of 10.01% a year. You repay $25,500 in total, of which $5,500 is interest.

Solved by iteration on a standard amortising schedule. It reflects the interest rate only, if the deal also carries fees, the APR calculator gives the fuller comparison.

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Questions

About this calculator

Why would I need to work out the rate?

Equipment and vehicle finance is often quoted as 'just $425 a month' with no rate stated at all. This reveals what you are actually being charged so you can compare it with a bank.

The rate looks much higher than I was told: why?

Either fees are baked into the amount financed, or the quoted figure was a flat rate on the original balance rather than a reducing-balance rate. Flat rates roughly double when converted properly.

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Numbers are only half the job

Good margins still need customers finding you and systems that hold it together. BDEVY covers the marketing, technology and automation side.