How to Use the Legal Max Interest Rate Checker
Unlike Korea, which has a single nationwide legal maximum interest rate, the United States has no federal usury cap. Instead, each state sets its own maximum rate for consumer loans under its own usury statute, and many licensed lenders — banks, credit unions, and other federally chartered institutions — are exempt from these state caps entirely under federal preemption rules.
This calculator lets you pick an example state (or enter a custom cap) and compares it against your loan's agreed rate, principal, and term to estimate how much excess interest you'd be paying above that state's general usury limit. The state figures shown are simplified, commonly cited reference points for non-exempt loans — actual statutes include many carve-outs by lender type, loan size, and purpose.
Because usury law varies so much by state and lender license status, this tool is meant for general education, not a legal determination. If you suspect a loan violates your state's usury law, the safest step is to check your state's specific statute or consult a licensed attorney before taking action.
Frequently Asked Questions
No. The U.S. has no single federal usury cap — each state sets its own maximum rate for consumer loans, and many licensed lenders such as banks and credit unions are exempt from state caps under federal law.
Consequences vary by state — some void all interest on the loan, others let the lender keep only the legal rate, and a few impose penalties. The rules depend on your state and the type of lender.
No. This is a general educational estimate only. Actual usury limits depend on your specific state, loan type, and lender's license status, so consult a licensed attorney for legal advice.