Loan Calculator - Interest

This calculates the interest per year on a real estate loan. Enter three or four inputs. Enter years (n), loan amount (present value - PV), payment per month (PMT), and/or loan balance (future value - balloon payment - FV).

Use no percentage or dollar characters.



Example

You propose a loan with a monthly payment of $1,797.66 for 15 years. The amount of the loan is $200,000.

Payments per year = 12
Years = 15
Loan Amount = 200000
Payment = 1797.66
Balance = 0

What is the interest rate on this loan?

7%


Let's say you propose the same loan (with the same monthly payments and same term) but in addition there's a balloon payment (balance) due at the end of 15 years of $10,000.

Balance = 10000

What is the interest rate on the loan?

7.274%


This calculation enables you to devise a loan with certain characteristics and then determine what the interest rate is.