Enter your loan amount, payment, and term to find the implied interest rate.
| Loan Principal | $200,000 |
| Monthly Payment | $1,200 |
| Term | 360 months (30.0 years) |
| Monthly Interest Rate | 0.0010% |
| Annual Interest Rate (APR) | 0.012% |
| Total Paid | $432,000 |
| Total Interest | $232,000 |
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PMT = PV × r × (1+r)^n / ((1+r)^n − 1)
Solved for r (monthly rate) given PV, PMT, and n using Newton's method.
Enter your loan amount, monthly payment, and loan term. The calculator uses Newton's method to solve the loan payment formula for the unknown rate.
Under 5% is excellent, 5-8% is good, 8-12% is average. Anything above 15% is high — consider improving credit first.
On a $300,000 30-year mortgage, 1% higher rate = $60,000+ more in total interest. Small rate differences compound into enormous amounts.
Improve credit score (740+ gets best rates), make a larger down payment (20%+ for mortgages), shorten loan term, comparison shop at least 3 lenders, and consider buying points to reduce rate.
Interest rate is the base borrowing cost. APR includes fees (origination, points, mortgage insurance). APR is always ≥ interest rate. Use APR to compare loans accurately.
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.