Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Charles Schwab's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was €2,830 Mil. Charles Schwab's average total debt for the quarter that ended in Mar. 2026 was €27,518 Mil. Therefore, Charles Schwab's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 10.29%.
Charles Schwab (HAM:SWG) Effective Interest Rate on Debt % Explanation
Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.
Charles Schwab Effective Interest Rate on Debt % Related Terms
Charles Schwab Effective Interest Rate on Debt % Historical Data
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The historical data trend for Charles Schwab's Effective Interest Rate on Debt % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Charles Schwab Effective Interest Rate on Debt % Chart
HAM:SWG vs HOOD, IBKR, LPLA: Effective Interest Rate on Debt % Comparison
For the Capital Markets subindustry, Charles Schwab's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Charles Schwab Effective Interest Rate on Debt % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Charles Schwab's Effective Interest Rate on Debt % distribution charts can be found below:
* The bar in red indicates where Charles Schwab's Effective Interest Rate on Debt % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data,
the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data.
Effective Interest Rate on Debt % is displayed in the 30-year financial page.
What does a Effective Interest Rate on Debt % of 10.29% mean?
Charles Schwab (HAM:SWG) has a Effective Interest Rate on Debt % of 10.29% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Charles Schwab and its competitors.
Is Charles Schwab's Effective Interest Rate on Debt % too high?
Charles Schwab's current Effective Interest Rate on Debt % is 10.29%. Overall, Charles Schwab has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Charles Schwab's Effective Interest Rate on Debt % compare to HOOD and IBKR?
Charles Schwab's Effective Interest Rate on Debt % of 10.29% can be compared against companies in the Capital Markets industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Capital Markets company?
A good Effective Interest Rate on Debt % depends on the Capital Markets industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Charles Schwab and its competitors. Charles Schwab's current Effective Interest Rate on Debt % is 10.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Charles Schwab stock overvalued right now?
Charles Schwab (HAM:SWG) has a current Effective Interest Rate on Debt % of 10.29%. The stock's GF Value™ is €89.41, compared to a current price of €84.06 — trading 6% below its estimated fair value. The current Effective Interest Rate on Debt % is 10.29%. Charles Schwab's overall GF Score™ is 73/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Charles Schwab (HAM:SWG), the current Effective Interest Rate on Debt % is 10.29% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Charles Schwab (HAM:SWG) Overvalued in 2026?
Based on GuruFocus' analysis, Charles Schwab stock appears to be undervalued.
The current stock price of €84.06 is trading 6% below its estimated GF Value™ of €89.41.
Key valuation signals for HAM:SWG:
Effective Interest Rate on Debt %: 10.29%
GF Value™: €89.41 vs. price of €84.06 (6% below fair value)
No single metric tells the full story. See the HAM:SWG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Charles Schwab is one of the largest retail-oriented financial-services companies in the US, with $11.9 trillion in client assets across its brokerage, banking, asset management, custody, financial advisory, and wealth management businesses at the end of 2025. While best known for its retail brokerage offering, Schwab generates the lion's share of its revenue and profits through its Charles Schwab Bank and asset management segments. The firm is a dominant player in Registered Investment Advisor(RIA) custody, with over 40% market share, and has recently pushed into wealth management with robo-advisory, direct indexing, and other managed-investment solutions.
73GF Score
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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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