Interest Rate Calculator
Find APR · Growth rate · APR ↔ APY
% Enter balances and time, or loan payments, to solve for the interest rate.
How to Calculate an Interest Rate
An interest rate calculator works backward from known cash amounts and time. Instead of asking how much you will earn at a given rate, you ask which rate produces the outcome you already see on a statement, offer, or investment goal.
Compound growth rate
Simple interest rate
Loan APR from payment
APR to APY
Reference Table & FAQ
| APR | APY (monthly) | APY (daily) |
|---|---|---|
| 3% | 3.04% | 3.05% |
| 5% | 5.12% | 5.13% |
| 6% | 6.17% | 6.18% |
| 8% | 8.30% | 8.33% |
| 10% | 10.47% | 10.52% |
| Annual rate | Approx years to double |
|---|---|
| 4% | 18 years |
| 6% | 12 years |
| 8% | 9 years |
| 10% | 7.2 years |
| 12% | 6 years |
Rule of 72 is an approximation. Use Growth Rate mode for an exact required rate.
How to Use This Interest Rate Calculator
Growth Rate mode needs a starting balance, ending balance, and time. Choose compound, simple, or continuous interest. Loan APR mode needs principal, payment size, payment count, and how often you pay. APR ↔ APY mode converts a stated rate into an effective yearly yield, or the reverse. Defaults load so you see a solved rate immediately on open.
Read the hero percentage as the solved annual rate. Compare APR and APY in the chips. Use the chart to see how the balance or payment path looks at that rate, and export the detail table when you need numbers for a spreadsheet.
How to calculate the rate manually
1. Identify PV, FV, and years for growth, or P, PMT, and N for a loan. 2. Pick compounding or payment frequency. 3. Apply the matching formula, or iterate on loan rate until the payment equation balances. 4. Convert periodic rate to APR. 5. Convert APR to APY if you need the effective yield.
Worked growth example
$10,000 grows to $15,000 in 5 years with monthly compounding. The ratio is 1.5. Raising 1.5 to the power 1/(12×5) and subtracting 1 gives the monthly rate. Multiply by 12 for the nominal APR of about 8.14%. The matching APY is about 8.45% because monthly compounding adds a little extra effective yield.
If the same balances used simple interest instead, the rate would be (1.5 − 1) / 5 = 10% per year. Compounding lowers the stated APR needed to reach the same ending amount when interest earns interest.
Worked loan example
A $250,000 loan with a $1,800 monthly payment for 360 months implies a specific APR that Loan APR mode solves with Newton iteration. If total payments cannot cover principal even at 0%, the calculator reports that no real non negative rate fits.
Common mistakes
- Comparing APR from one product to APY from another
- Using years when the formula expects periods, or the reverse
- Forgetting that biweekly and semimonthly payment counts differ
- Assuming simple interest when the account compounds
- Entering ending balance lower than starting balance for a growth rate (that implies a negative rate)
When this calculator is useful
Use it to reverse engineer a savings rate from two balances, check what APR a quoted loan payment implies, convert bank APR to APY, or estimate the rate needed to hit a future goal. Pair it with the Interest Calculator or Compound Interest Calculator when you already know the rate and want the future balance.
When this calculator may not be enough
It does not price fees into APR the way a Truth in Lending disclosure might, and it does not model irregular payments, balloons, or teaser rates. Credit card interest and daily balance methods need product specific rules.
Limitations
Results are educational math estimates. Loan rate solving assumes level payments and a constant rate. Always confirm rates with the lender or statement before making decisions.
Sources & References
- Consumer Financial Protection Bureau: mortgage interest rate vs APR: consumerfinance.gov/ask-cfpb
- U.S. Securities and Exchange Commission Investor.gov: Compound interest: investor.gov