Interest Rate Calculator

The amount charged by a lender to a borrower for the use of an asset is known as interest rate in finance. As a result, the interest rate is the cost of debt for the borrower and the rate of return for the lender.

It’s worth noting that when you deposit money in a bank (e.g., put money in your savings account), you’ve effectively lent money to the bank. The interest rate reflects your profit in this situation.

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In most cases, the interest rate is represented as a percentage of the principal amount (outstanding loan or value of deposit). It is usually expressed as an annual percentage yield (APY) or effective annual yield (EY) on an annual basis.