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How to Calculate the Interest Rate From an Income Statement

By Motley Fool Staff – Updated Apr 30, 2025 at 10:04PM

Key Points

  • Find a company's periodic interest rate by dividing interest expense by total debt and multiplying by 100.
  • To annualize a quarterly rate, multiply the periodic interest rate by four.
  • Use income statements for interest expenses and balance sheets for total debt figures.
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