Bank Loan Interest Rate Calculator

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Bank Loan Interest Rate Calculator

 

Bank Loan Interest Rate Calculator

 

Bank Loan Interest Rate Calculation formula

The formula to calculate the interest payable on a bank loan is:

Interest Payable = (Principal Amount x Interest Rate x Loan Tenure)/100

Where:

Principal Amount: This is the amount of money that you borrow from the bank.

Interest Rate: This is the rate at which the bank will charge interest on the loan.

Loan Tenure: This is the duration for which you want to borrow the loan.

The formula above assumes that the loan interest is compounded on a monthly basis. In case the interest is compounded on a quarterly or semi-annual basis, the formula would be slightly different.

It’s important to note that the actual interest payable on a bank loan may differ based on various factors such as processing fees, prepayment charges, and other terms and conditions of the loan agreement. Therefore, it is always advisable to read the loan agreement carefully and consult with the bank to get a more accurate estimate of the interest payable on the loan.