What is Interest Rate ? The rate of amount paid by the borrowers to the lenders for the

money borrowed.

You need to pay a certain amount as monthly payments with this interest rate for the amount you borrowed from the lender.

It is expressed in %

Do you know how to calculate it ?

Interest Rate CalculationYour inputs would be Initial Payment, Monthly Payment and

Number of Years. Initial Payment The amount borrowed from lender. Monthly Payment The amount paid to the lender monthly till the term gets

completed. Number of Years The number of years you will pay the amount to the lender.

Interest Rate FormulaThe formula used for the interest rate calculation is :

i ≈ [ ( 1 + ( P/A ) ) 1/q - 1 ] q - 1 Where, q = log[ 1 + (1/N) ] / log2 N = n * 12 (here n = number of years) P = Payment Amount A = Initial Amount N = Number of Payments

Interest Rate Calculation

Consider your initial payment is Rs. 30000, monthly payment is 500 and the number of years would be 6.

Apply all the values in the formula : i ≈ [ ( 1 + ( P/A ) ) 1/q - 1 ] q - 1

= 6.24 %

Find it more easier to calculate with an Interest Rate Calculator.https://www.easycalculation.com/mortgage/interest-rate.php