Libor Rate Calculator calculator can be used to calculate the interest rate based on the London Interbank Offered Rate (Libor).
Learn how to use the Libor Rate Calculator calculator and its working principles
The calculator uses the formula: Interest = Principal × Libor Rate × Tenor / 12. This formula calculates the interest based on the principal amount, the annual Libor rate, and the tenor of the loan in months.
If you have a principal amount of $10,000, a tenor of 6 months, and a Libor rate of 3%, the interest amount would be calculated as follows:
Interest = $10,000 × 3% × 6 / 12 = $150
Total Amount = $10,000 + $150 = $10,150