Monthly Interest Rate Calculator

Enter the following information to calculate the monthly interest rate:

How To Calculate Interest Rate Per Month

The monthly interest rate is the annual interest rate divided by the number of months in a year. In order to calculate it:

1. Convert the annual interest rate into a decimal: If the rate is given as a percentage, divide it by 100. For example, if the annual interest rate is 24%, then the decimal equivalent is 24 / 100 = 0.24.
2. Divide the decimal interest rate by 12: There are 12 months in a year, so dividing by 12 gives you the monthly interest rate.

For example, suppose you have a credit card with an annual interest rate (APY) of 24%. To find the monthly interest rate, follow these steps:

• Convert 24% to decimal: 24 / 100 = 0.24
• Divide the decimal rate by 12: 0.24 / 12 = 0.02

Therefore, the monthly interest rate for this credit card is 0.02, or 2%.

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