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For financial professionals
Financial Professionals Monthly federal rates
Monthly federal rates
  • Terms of three years or less. If the term of a debt instrument is three years or less, the applicable federal rate is the federal short-term rate.
  • Terms of over three years but not over nine years. If the term of a debt instrument is over three years but not over nine years, the applicable federal rate is the federal mid-term rate.
  • Terms of over nine years. If the term of a debt instrument is over nine years, the applicable federal rate is the federal long-term rate.
  • For loans that do not have a specific term and are outstanding for at least a year, the Blended Annual Rate is used.
    • The Blended Annual Rate for 2026 is 3.82%
Which AFR (Applicable Federal Rate) should you use?
July 2026

The Section 7520 rate is 5.20%

The AFRs are as follows:AnnualSemi-annualQuarterlyMonthly
Short-term
(up to 3 years)		3.03%3.01%3.00%2.99%
Mid-term  
(3 to 9 years)		3.29%3.26%3.25%3.24%
Long-term  
(over 9 years)		3.77%3.74%3.72%3.71%

 

First quarter 2026

January 2026

The Section 7520 rate is 4.60%

The AFRs are as follows:AnnualSemi-annualQuarterlyMonthly
Short-term
(up to 3 years)		2.75%2.73%2.72%2.71%
Mid-term  
(3 to 9 years)		2.88%2.86%2.85%2.84%
Long-term  
(over 9 years)		3.51%3.48%3.46%3.48%

 

February 2026

The Section 7520 rate is 4.60%

The AFRs are as follows:AnnualSemi-annualQuarterlyMonthly
Short-term
(up to 3 years)		2.70%2.68%2.67%2.67%
Mid-term  
(3 to 9 years)		2.92%2.90%2.89%2.88%
Long-term  
(over 9 years)		3.56%3.53%3.51%3.50%

 

March 2026

The Section 7520 rate is 4.80%

The AFRs are as follows:AnnualSemi-annualQuarterlyMonthly
Short-term
(up to 3 years)		2.72%2.70%2.69%2.68%
Mid-term  
(3 to 9 years)		2.97%2.95%2.94%2.93%
Long-term  
(over 9 years)		3.58%3.55%3.53%3.52%
Second quarter 2026

April 2026

The Section 7520 rate is 4.60%

The AFRs are as follows:AnnualSemi-annualQuarterlyMonthly
Short-term
(up to 3 years)		3.59%3.56%3.54%3.53%
Mid-term  
(3 to 9 years)		3.82%3.78%3.76%3.75%
Long-term  
(over 9 years)		4.62%4.57%4.54%4.53%

 

May 2026

The Section 7520 rate is 5.00%

The AFRs are as follows:AnnualSemi-annualQuarterlyMonthly
Short-term
(up to 3 years)		2.89%2.87%2.86%2.85%
Mid-term  
(3 to 9 years)		3.09%3.07%3.06%3.05%
Long-term  
(over 9 years)		3.65%3.62%3.60%3.59%

 

June 2026

The Section 7520 rate is 5.00%

The AFRs are as follows:AnnualSemi-annualQuarterlyMonthly
Short-term
(up to 3 years)		2.91%2.89%2.88%2.87%
Mid-term  
(3 to 9 years)		3.13%3.11%3.10%3.09%
Long-term  
(over 9 years)		3.68%3.65%3.63%3.62%
First quarter 2025

January 2025

The Section 7520 rate is 5.20%

The AFRs are as follows:AnnualSemi-annualQuarterlyMonthly
Short-term
(up to 3 years)		4.33%4.28%4.26%4.24%
Mid-term  
(3 to 9 years)		4.24%4.20%4.18%4.16%
Long-term  
(over 9 years)		4.53%4.48%4.46%4.44%

 

February 2025

The Section 7520 rate is 5.40%

The AFRs are as follows:AnnualSemi-annualQuarterlyMonthly
Short-term
(up to 3 years)		3.29%3.26%3.25%3.24%
Mid-term  
(3 to 9 years)		3.42%3.39%3.38%3.37%
Long-term  
(over 9 years)		3.67%3.64%3.62%3.61%

 

March 2025

The Section 7520 rate is 5.40%

The AFRs are as follows:AnnualSemi-annualQuarterlyMonthly
Short-term
(up to 3 years)		3.26%3.23%3.22%3.21%
Mid-term  
(3 to 9 years)		3.38%3.35%3.34%3.33%
Long-term  
(over 9 years)		3.64%3.61%3.59%3.58%
Second quarter 2025

April 2025

The Section 7520 rate is 5.00%

The AFRs are as follows:AnnualSemi-annualQuarterlyMonthly
Short-term
(up to 3 years)		4.16%4.12%4.10%4.09%
Mid-term  
(3 to 9 years)		4.21%4.17%4.15%4.13%
Long-term  
(over 9 years)		4.61%4.56%4.53%4.52%

 

May 2025

The Section 7520 rate is 5.00%

The AFRs are as follows:AnnualSemi-annualQuarterlyMonthly
Short-term
(up to 3 years)		4.05%4.01%3.99%3.98%
Mid-term  
(3 to 9 years)		4.10%4.06%4.04%4.03%
Long-term  
(over 9 years)		4.62%4.57%4.54%4.53%

 

June 2025

The Section 7520 rate is 5.00%

The AFRs are as follows:AnnualSemi-annualQuarterlyMonthly
Short-term
(up to 3 years)		4.00%3.96%3.94%3.93%
Mid-term  
(3 to 9 years)		4.07%4.03%4.01%4.00%
Long-term  
(over 9 years)		4.77%4.71%4.68%4.66%
Third quarter 2025

July 2025

The Section 7520 rate is 5.00%

The AFRs are as follows:AnnualSemi-annualQuarterlyMonthly
Short-term
(up to 3 years)		4.12%4.08%4.06%4.05%
Mid-term  
(3 to 9 years)		4.19%4.15%4.13%4.11%
Long-term  
(over 9 years)		4.90%4.84%4.81%4.79%

 

August 2025

The Section 7520 rate is 4.80%

The AFRs are as follows:AnnualSemi-annualQuarterlyMonthly
Short-term
(up to 3 years)		3.05%3.03%3.02%3.01%
Mid-term  
(3 to 9 years)		3.07%3.05%3.04%3.03%
Long-term  
(over 9 years)		4.64%3.61%3.59%3.58%

 

September 2025

The Section 7520 rate is 4.80%

The AFRs are as follows:AnnualSemi-annualQuarterlyMonthly
Short-term
(up to 3 years)		4.00%3.96%3.94%3.93%
Mid-term  
(3 to 9 years)		4.04%4.00%3.98%3.97%
Long-term  
(over 9 years)		4.83%4.77%4.74%4.72%

 
Fourth quarter 2025

October 2025

The Section 7520 rate is 4.60%

The AFRs are as follows:AnnualSemi-annualQuarterlyMonthly
Short-term
(up to 3 years)		3.81%3.77%3.75%3.74%
Mid-term  
(3 to 9 years)		3.87%3.83%3.81%3.80%
Long-term  
(over 9 years)		4.73%4.68%4.65%4.64%

November 2025

The Section 7520 rate is 4.60%

The AFRs are as follows:AnnualSemi-annualQuarterlyMonthly
Short-term
(up to 3 years)		3.69%3.66%3.64%3.63%
Mid-term  
(3 to 9 years)		3.83%3.79%3.77%3.76%
Long-term  
(over 9 years)		4.62%4.57%4.54%4.53%

December 2025

The Section 7520 rate is 4.60%

The AFRs are as follows:AnnualSemi-annualQuarterlyMonthly
Short-term
(up to 3 years)		2.78%2.76%2.75%2.74%
Mid-term  
(3 to 9 years)		2.87%2.85%2.84%2.83%
Long-term  
(over 9 years)		3.45%3.42%3.41%3.40%

Important Information

Guarantees are based upon the claims-paying ability of the issuing insurance company.

Insurance products issued by Principal National Life Insurance Company (except in NY) and Principal Life Insurance Company®. Plan administrative services offered by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., member SIPC, and/or independent broker/dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, IA 50392.

This information is educational only and provided with the understanding that Principal® is not rendering consulting, legal, accounting, investment advice or tax advice. You should consult with appropriate individuals including counsel or other professionals on all matters pertaining to business, legal, tax, investment or accounting obligations and requirements.