How does this calculator find the interest rate?

Given principal, EMI and tenure, it solves the EMI equation iteratively (Newton-Raphson) to find the implied monthly rate, then annualises it.

When a lender quotes only the EMI without disclosing the actual annual interest rate — you can back-calculate the true cost of the loan.

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Interest Rate Calculator

Find the interest rate hidden inside an EMI.

Reviewed by Nisha SLast verified 6 Sept 2026RBI-compliantFact-check policy

Loan Amount₹5,00,000

₹10K₹10Cr

Monthly EMI₹10,000

₹500₹10L

Tenure (yrs)5 yrs

130

Effective Annual Rate7.42%

Compare rates across 50+ banks.

Personalised plan in 60 seconds.

Useful when you only know the EMI and want to back-calculate the actual interest rate charged.

Solved iteratively from EMI = P×r×(1+r)^n / ((1+r)^n − 1)

Everything you need to know about the Interest Rate Calculator.

Results are illustrative estimates for planning. Actual figures depend on bank/AMC terms, taxes and market conditions.