How do I calculate the interest rate?
Knowing how to calculate interest rate is important for understanding a company’s financial situation. Companies carry different types of debt, and it is easy to calculate a company’s interest rate from its income statement and balance sheet. To calculate the interest rate, one can use the formula
Interest rate = Effective Interest Rate / Principal. With the help of spreadsheet programs such as Sourcetable, the process of calculating the interest rate can be made much simpler.