Divide this by 12 to get the monthly interest . Steps to Calculate Monthly Interest Identify the Principal Amount: This is the initial sum of the money that is either invested or borrowed. Determine the Annual Interest Rate : This rate is typically provided as a percentage. 🙋 First: What Is an Interest Rate Per Month ? An interest rate per month tells you how much interest you’re paying (or earning) in a single month , based on the annual interest rate , also known as APR (Annual Percentage Rate ). Why monthly? Because most loans and credit cards calculate and charge interest monthly, not yearly. This online calculator computes the interest accrued monthly on an amount of borrowed money. Enter Principal or Initial Loan amount in any currency Annual Percentage Rate (APR) or Interest Rate Number of days in the month (28, 29, 30 or 31) The calculator will provide the following interest numbers: daily rate (%), daily amount and total amount over the month (in any currency). Use our free Monthly Interest Calculator to easily calculate your interest earnings or payments. Perfect for savings accounts, loans, and investments.
