Interest Rate Calculator: Need to figure out Interest Rate? You may find it difficult to find the right calculator to make your calculations easy. Here is a piece of good news for you, use our Interest Rate Calculator the most flexible one around. When you take a loan from any financial institution you might be worried about the interest rate payable. Use the handy tool to know the Interest Rate and make your calculations fast and error free.
The Calculator can be worthwhile and saves you lot of time and effort in doing the lengthy calculations. Read on further to know the procedure on how to use Interest Rate Calculator, Solved Examples, and Formula to obtain the Interest Rate. Our instant online tool determines the real interest rates on loans with fixed and monthly payments.
What is Interest Rate?
An interest rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
How to Calculate Interest Rate?
In order to Calculate Interest Rate Firstly, look into the basic formula of Simple Interest i.e. I = PTr
In this case, P = Principle is the sum of money on which Interest is earned
r = Interest Rate is the Percentage at which Interest accrued over time
T = Time is the length of the period in years
We need to obtain the value of r i.e. Interest Rate here. You can get the value of r by dividing the terms P, T with the interest in the formula.
On doing so, we get r = I /PT
Example
Calculate the Interest Rate for the Interest 450 and a principle amount of Rs. 5,000, and a time of 18 months.
Solution:
We know r = I/PT
Given T = 18 months and to convert it into years divide by 12 i.e. 18/12 = 1.5 yrs
Substitute the given values in the formula and we get
r = 450/5000(1.5)
= 0.06
Therefore Interest Rate for the Interest 450 and a principle amount of Rs. 5,000, and a time of 18 months is 0.06
Steps to use Interest Rate Calculator
You can use the simple steps listed here to understand how to use Interest Rate Calculator. Thereby you can get the output easily by following the steps in a fraction of second. They are as such
- In the initial step, you need to give the inputs values like Interest, Principle, Time Duration.
- Choose from the dropdown box whether the time period is yearly or monthly.
- After Choosing the Input Values you can click on the Submit Button.
- Thereafter, you can get the concerned output i.e. Rate of Interest in less time with a detailed explanation.
FAQs on Interest Rate
1. What is meant by Interest Rate?
An interest rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
2. How do you Calculate the Interest Rate?
You can Calculate the Interest Rate using the direct formula r = I/PT. Substitute the given input values and obtain the corresponding Interest Rate in no time.
3. Where can I find solved Examples on Interest Rate?
You can get Solved Examples on Interest Rate on our page to understand the concept much better as all of them are given with a detailed explanation.
4. How to determine the Interest Rate Easily?
You can determine the Interest Rate Easily by making use of our handy Interest Rate Calculator and obtain the output in a fraction of seconds. The Online tool saves you from the hassle of doing lengthy calculations.