Prime Rate Today: 7.00%
The prime rate is 7.00%, in effect since September 17, 2026, after the Federal Reserve set its target range at 3.75% to 4.00%. Prime sits 3 points above the top of that range, and HELOCs, most credit cards and many variable-rate loans are priced from it. It changes only when the Fed moves; the next Fed decision is October 28, 2026.
What the prime rate affects
- HELOCs: almost all charge prime plus a margin set for you; see HELOC rates.
- Credit cards: most variable card APRs are prime plus a margin; see average credit card interest rate.
- Other variable-rate loans: some private student loans, personal lines of credit and small-business loans.
- Not affected: fixed-rate mortgages, auto loans and personal loans you already have. New fixed mortgage rates follow the 10-year Treasury yield instead: see mortgage rates.
Example (hypothetical): on a $50,000 HELOC balance at prime + 1 point (8.00%), interest is about $333.33 a month. Each 0.25-point move in prime changes that by about $10.42 a month. Our arithmetic: balance x rate / 12; your margin is in your loan agreement.
Prime rate history since 2000
| Effective | Prime rate |
|---|---|
| September 17, 2026 | 7.00% |
| December 11, 2025 | 6.75% |
| October 30, 2025 | 7.00% |
| September 17, 2025 | 7.25% |
| December 19, 2024 | 7.50% |
| November 8, 2024 | 7.75% |
| September 19, 2024 | 8.00% |
| July 27, 2023 | 8.50% |
| May 4, 2023 | 8.25% |
| March 23, 2023 | 8.00% |
| February 2, 2023 | 7.75% |
| December 15, 2022 | 7.50% |
| November 3, 2022 | 7.00% |
| September 22, 2022 | 6.25% |
| July 28, 2022 | 5.50% |
| June 16, 2022 | 4.75% |
| May 5, 2022 | 4.00% |
| March 17, 2022 | 3.50% |
| March 16, 2020 | 3.25% |
| March 4, 2020 | 4.25% |
| October 31, 2019 | 4.75% |
| September 19, 2019 | 5.00% |
| August 1, 2019 | 5.25% |
| December 20, 2018 | 5.50% |
| September 27, 2018 | 5.25% |
| June 14, 2018 | 5.00% |
| March 22, 2018 | 4.75% |
| December 14, 2017 | 4.50% |
| June 15, 2017 | 4.25% |
| March 16, 2017 | 4.00% |
| December 15, 2016 | 3.75% |
| December 17, 2015 | 3.50% |
| December 16, 2008 | 3.25% |
| October 29, 2008 | 4.00% |
| October 8, 2008 | 4.50% |
| April 30, 2008 | 5.00% |
| March 18, 2008 | 5.25% |
| January 30, 2008 | 6.00% |
| January 22, 2008 | 6.50% |
| December 11, 2007 | 7.25% |
| October 31, 2007 | 7.50% |
| September 18, 2007 | 7.75% |
| June 29, 2006 | 8.25% |
| May 10, 2006 | 8.00% |
| March 28, 2006 | 7.75% |
| January 31, 2006 | 7.50% |
| December 13, 2005 | 7.25% |
| November 1, 2005 | 7.00% |
| September 20, 2005 | 6.75% |
| August 9, 2005 | 6.50% |
| June 30, 2005 | 6.25% |
| May 3, 2005 | 6.00% |
| March 22, 2005 | 5.75% |
| February 2, 2005 | 5.50% |
| December 14, 2004 | 5.25% |
| November 10, 2004 | 5.00% |
| September 21, 2004 | 4.75% |
| August 10, 2004 | 4.50% |
| June 30, 2004 | 4.25% |
| June 27, 2003 | 4.00% |
| November 7, 2002 | 4.25% |
| December 12, 2001 | 4.75% |
| November 7, 2001 | 5.00% |
| October 3, 2001 | 5.50% |
| September 18, 2001 | 6.00% |
| August 22, 2001 | 6.50% |
| June 28, 2001 | 6.75% |
| May 16, 2001 | 7.00% |
| April 19, 2001 | 7.50% |
| March 21, 2001 | 8.00% |
| February 1, 2001 | 8.50% |
| January 4, 2001 | 9.00% |
| May 17, 2000 | 9.50% |
| March 22, 2000 | 9.00% |
| February 3, 2000 | 8.75% |
FAQ
What is the prime rate today?
7.00%, the rate the Federal Reserve's H.15 release reports for the bank prime loan rate. It has been 7.00% since September 17, 2026.
How is the prime rate set?
Each bank sets its own prime rate, and the Fed reports the rate posted by a majority of the 25 largest U.S. banks. In practice it moves with the Fed: it has been exactly 3 points above the top of the federal funds target range on almost every day since December 2008.
When will the prime rate change next?
Only if the Fed changes its target range. The next Fed meeting is October 27-28, 2026, with the decision on October 28, 2026. After past changes prime moved the same day or the next.
What was the highest prime rate ever?
21.50%, on December 19, 1980, in Fed data going back to 1955. The lowest was 3.25%, last seen from December 2008 to December 2015 and from March 2020 to March 2022.
Is the prime rate the same as the federal funds rate?
No. The federal funds rate is what banks charge each other overnight; its target range is 3.75% to 4.00%. Prime is what banks charge their most creditworthy business borrowers, and consumer loans are priced from it.
Sources
- Federal Reserve H.15, Selected Interest Rates: bank prime loan, "Rate posted by a majority of top 25 (by assets in domestic offices) insured U.S.-chartered commercial banks. Prime is one of several base rates used by banks to price short-term business loans."
- FRED, Bank Prime Loan Rate (DPRIME) and target range (DFEDTARU) (data through October 22, 2026)
- Federal Reserve, FOMC meeting calendar
General information, not financial advice. We do not predict Fed decisions.