Rytvae Consulting · Think Right · Invest Right
Loan Interest Rate Calculator
Result
Chart
Show formula & working
Loan = EMI × (1 − (1 + r)−n) ÷ r, solved for r
There is no direct formula for r, so it is found numerically (Newton–Raphson with bisection fallback), as Excel's RATE does. Annual rate = r × 12; effective annual = (1 + r)12 − 1.Details
How this works
Useful when a dealer quotes only an EMI, or when you want to check that an EMI matches the rate on your sanction letter.
If an offer was quoted as a flat rate, this calculator reveals the real reducing-balance rate behind the EMI.
Frequently asked questions
What is the effective annual rate?
Interest compounds monthly, so 12% a year charged monthly costs 12.68% over a full year. Lenders quote the nominal rate; the effective rate shows the compounding.
Does this include fees?
No — it uses only the EMI and the loan. Use the Loan APR Calculator to include processing fees and other charges.
Talk to Rytvae
Compare lenders, structure the loan and plan prepayments with someone who reads sanction letters for a living.