Home Loan Interest Rate Calculator
Find the interest rate implied by your loan amount, EMI, and tenure.
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Your result
8.50%
Implied annual interest rate
AI explanation
Formula
Solves for the rate r such that P = EMI × [(1+r)^n − 1] / [r × (1+r)^n], via bisectionWorked example
₹30L loan, ₹26,035 EMI, 20 years
| Field | Value |
|---|---|
| Loan amount | 3000000 |
| Monthly EMI | 26035 |
| Tenure | 240 |
| Implied annual interest rate | 8.5 |
Assumptions
- Assumes a standard reducing-balance EMI structure with no fees factored in — see the APR Calculator if you want to include fees in the effective rate.
- Informational only.
Frequently asked questions
Why would I need to calculate an implied interest rate?
Useful for verifying a lender's quoted rate matches the actual EMI they've offered, or for comparing loan offers presented only as "EMI per lakh" figures.
How is this different from the APR Calculator?
This calculator solves for the pure interest rate from principal, EMI, and tenure alone. The APR Calculator additionally factors in loan processing fees to show the true all-in cost of borrowing.
Why does this use bisection instead of a direct formula?
There's no closed-form algebraic solution for the rate in the EMI formula — bisection narrows in on the answer by repeatedly testing rates until the implied loan amount matches your input.
Related calculators
Sources
- Master Direction – Reserve Bank of India (Regulatory Framework for Housing Finance Companies) — Reserve Bank of India. Effective 17-02-2021, reviewed 13-09-2026.
This calculator provides a general estimate only and does not constitute financial advice.
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