Loans & Debt
What Rate Am I Paying?
Back into the true interest rate from an amount financed and a payment.
Your numbers
Annual rate (APR)
6.46%
- Monthly rate
- 0.5382%
- Total interest
- $2,790.00
- Total of payments
- $20,790.00
If the rate this backs into is far above what you were quoted, there are usually fees rolled into the amount financed. Ask the lender for the amount financed and the finance charge in writing.
What Rate Am I Paying? explained simply
Sometimes a dealer or lender only tells you the monthly payment. Work backwards from that payment to see the real interest rate you're being charged.
For example
Borrow $18,000 and pay $400 a month for 4 years? You're actually paying around 10% interest, good to know before you sign.
Words on this page
Want a second set of eyes on these numbers?
These calculators are estimates for planning purposes and don't account for every detail of your situation. Bring your results to us and we'll pressure-test them against your actual tax picture.
Talk to a CPA