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Loan Interest Rate From EMI Calculator

Work out loan interest rate from emi instantly with clear inputs, formula shown and shareable results.

About Loan Interest Rate From EMI Calculator

The EMI formula cannot be rearranged for the rate in closed form, so the rate is found numerically. Bisection narrows the monthly rate until the computed instalment matches the EMI you were quoted, exposing the true cost behind the payment.

Formula

Solve for r

Find r such that P·r/(1-(1+r)^-n) = EMI, then annual rate = 12r

Worked example

With the default values below, Loan Interest Rate From EMI Calculator returns Implied Annual Interest Rate of 10.0060%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Loan Amountminimum 0
800,000
Monthly EMIminimum 0
17,000
Number Of Monthsaccepts 1–480
60

Results

Implied Annual Interest Rate
10.0060%
Monthly Rate
0.833834%
Total Interest Over The Term
$220,000.00
Solution Note
Rate solved so that the EMI exactly amortises the loan

Step by step

  1. 1Values used
  2. 2Solve for r
  3. 3Implied Annual Interest Rate= 10.0060
  4. 4Monthly Rate= 0.833834
  5. 5Total Interest Over The Term= 220,000.00
  6. 6Solution Note= Rate solved so that the EMI exactly amortises the loan

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 6 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.

Frequently Asked Questions

Why does this matter?

Lenders sometimes quote only the instalment. Backing out the rate lets you compare the offer with a normal rate quote.

Is the answer an APR?

It is the nominal annual rate. Add processing fees and insurance to get a true APR, which will be higher.

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