Prime Rate Calculator
Compute effective lending rate and payments when interest is prime plus spread.
About this calculator
Prime rate and loan pricing
The prime rate is a benchmark rate banks charge their most creditworthy corporate customers. Many consumer products are priced as prime plus a spread (margin), such as prime + 2%.
When the prime rate rises, variable loan payments typically increase. This calculator shows payment and total interest at your assumed prime and spread.
Effective rate = Prime rate + Spread
Reference tables & standards
Federal Reserve H.15 — prime rate context
Source: U.S. Federal Reserve (H.15 selected interest rates)| Term | Meaning |
|---|---|
| Prime rate | Reference rate posted by major banks |
| Spread / margin | Additional percentage added for a specific loan |
| Variable loan | Payment changes when prime or index changes |
| Fed funds rate | Influences but is not identical to prime |
Calculations are for educational and planning purposes only. They are not financial, tax, or investment advice. Rates, fees, and inflation assumptions vary in real markets.