Current Prime Rate: 6.75% (March 2026)
Live U.S. prime rate, recent rate changes, bank-by-bank rates, and FOMC outlook
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Current Prime Rate
What Is the Prime Rate Today?
The current U.S. prime rate is 6.75%, effective December 11, 2025, after the Federal Reserve cut the federal funds rate by 0.25% to a target range of 3.50%–3.75%. This was the fifth consecutive cut since September 2024, bringing prime down from 8.50%. The next FOMC meeting is May 6–7, 2026, where markets expect the Fed to hold rates steady.
Key Facts
- Current prime rate: 6.75% (effective December 11, 2025)
- Previous prime rate: 7.00% (October 31 – December 10, 2025)
- Federal funds rate: 3.50%–3.75% target range
- Formula: Prime rate = Fed funds rate upper bound (3.75%) + 3.00% = 6.75%
- Rate trend: Five cuts totaling 1.75% since September 2024 (prime fell from 8.50% to 6.75%)
- Next decision: May 6–7, 2026 FOMC meeting. Markets price ~85% probability of hold.
On This Page
Today’s Prime Rate Explained
The prime rate at 6.75% means that the nation’s largest banks charge their most creditworthy corporate customers 6.75% for short-term operating loans. For consumers and small businesses, the prime rate is a benchmark — your actual rate is prime plus a margin based on your credit profile. The CFPB explains that the margin depends on the product type and your creditworthiness.
At 6.75% prime, here is what you are paying right now:
- Credit cards: 18.75%–29.75% APR (prime + 12%–23% margin). The average is 20.97% per Federal Reserve G.19 data.
- HELOCs: 7.25%–8.75% APR (prime + 0.5%–2%).
- SBA 7(a) loans: 9.00%–11.50% APR (prime + 2.25%–4.75%). See SBA rate caps.
- Adjustable-rate mortgages: 6.75%–7.75% APR (prime + 0%–1%).
- Business lines of credit: 7.8%–25% APR depending on lender and credit.
Use the Prime Rate Impact Calculator to see the exact effect on your specific loan balance.
Prime Rate by Bank
The Wall Street Journal prime rate is based on a survey of the 30 largest U.S. banks. In practice, all major banks post the same prime rate because it is mechanically tied to the federal funds rate. As of March 2026:
| Bank | Prime Rate | Effective Date |
|---|---|---|
| JPMorgan Chase | 6.75% | Dec 11, 2025 |
| Bank of America | 6.75% | Dec 11, 2025 |
| Wells Fargo | 6.75% | Dec 11, 2025 |
| Citibank | 6.75% | Dec 11, 2025 |
| U.S. Bank | 6.75% | Dec 11, 2025 |
| PNC Financial | 6.75% | Dec 11, 2025 |
| Goldman Sachs | 6.75% | Dec 11, 2025 |
| TD Bank | 6.75% | Dec 11, 2025 |
While the WSJ prime rate is uniform across major banks, some smaller community banks and credit unions may post a slightly different rate. These differences are typically 0.25% or less and apply only to specific local products. For consumer and small business lending, the 6.75% WSJ prime rate is the standard benchmark used by virtually all lenders nationwide.
Recent Rate Changes Timeline
The Fed has cut rates five times since September 2024, each time reducing prime by the same amount. Here is the complete timeline of the current easing cycle, based on FRED historical data:
| FOMC Date | Fed Action | Fed Funds Rate | Prime Rate | Change |
|---|---|---|---|---|
| Dec 10, 2025 | ↓ Cut 0.25% | 3.50%–3.75% | 6.75% | ↓ 0.25% |
| Oct 29, 2025 | ↓ Cut 0.25% | 3.75%–4.00% | 7.00% | ↓ 0.25% |
| Jun 11, 2025 | ↓ Cut 0.25% | 4.00%–4.25% | 7.25% | ↓ 0.25% |
| Nov 7, 2024 | ↓ Cut 0.25% | 4.25%–4.50% | 7.50% | ↓ 0.25% |
| Sep 18, 2024 | ↓ Cut 0.50% | 4.50%–4.75% | 8.00% | ↓ 0.50% |
| Jul 2023 (last hike) | ↑ Raise 0.25% | 5.25%–5.50% | 8.50% | ↑ 0.25% |
For the complete history back to 1980, see our Prime Rate History page and the interactive Prime Rate Forecast Calculator.
How Today’s 6.75% Rate Affects You
The drop from 8.50% to 6.75% since September 2024 has reduced borrowing costs across every variable-rate product. Here is the dollar impact on common loan balances:
| Product | Balance | Old Rate (8.50% prime) | New Rate (6.75% prime) | Annual Savings |
|---|---|---|---|---|
| Credit card (prime+16%) | $5,000 | 24.50% | 22.75% | $88/yr |
| HELOC (prime+1%) | $80,000 | 9.50% | 7.75% | $1,400/yr |
| SBA 7(a) (prime+2.75%) | $200,000 | 11.25% | 9.50% | $3,500/yr |
| ARM (prime+0.5%) | $350,000 | 9.00% | 7.25% | $6,125/yr |
| Business LOC (prime+8%) | $50,000 | 16.50% | 14.75% | $875/yr |
Model your exact savings with the Prime Rate Impact Calculator or compare variable vs fixed rates using the Variable vs Fixed Rate Calculator.
What Happens Next: FOMC Outlook
The Federal Reserve’s next rate decision comes at the May 6–7, 2026 FOMC meeting. Based on CME FedWatch probabilities and FOMC dot-plot projections:
May 6–7, 2026: Markets price ~85% probability of hold. Inflation data from Q1 2026 will be the deciding factor. If core PCE remains above 2.5%, the Fed holds. Prime stays at 6.75%.
June 17–18, 2026: The first meeting where a cut is meaningfully priced in (~40% probability). If economic data softens, a 0.25% cut would bring prime to 6.50%.
Second half 2026: FOMC meetings on July 29–30, September 16–17, October 28–29, and December 16–17. Consensus forecast expects 1–2 cuts total in H2, potentially bringing prime to 6.25%–6.50% by year-end.
What this means for borrowers: If you are considering a variable-rate product (HELOC, SBA loan, business LOC), the direction of rates is favorable — prime is more likely to fall than rise in 2026. If you lock a fixed rate now, you may miss further savings. But if inflation resurges, the Fed could pause or even reverse course. Read our full analysis: Prime Rate Forecast 2026.
Frequently Asked Questions
What is the current prime rate today?
The current U.S. prime rate is 6.75% as of March 2026, effective December 11, 2025. It equals the federal funds rate upper bound (3.75%) plus 3.00%. The rate is published by the Wall Street Journal based on a survey of the 30 largest U.S. banks.
When did the prime rate last change?
The prime rate last changed on December 11, 2025, dropping 0.25% from 7.00% to 6.75%. This followed the Fed’s fifth consecutive rate cut since September 2024. The previous change was October 31, 2025 (from 7.25% to 7.00%).
When will the prime rate change again?
The next opportunity is the May 6–7, 2026 FOMC meeting, but markets expect the Fed to hold. The first likely cut is at the June 17–18 meeting (~40% probability). Prime changes only when the Fed adjusts the federal funds rate.
Is the prime rate the same at every bank?
Effectively yes. All 30 banks surveyed by the Wall Street Journal post the same prime rate of 6.75%. Some smaller community banks may deviate by 0.25%, but for consumer and business lending purposes, the WSJ prime rate is the universal standard.
How does the prime rate affect my credit card?
Most credit card APRs equal prime + a fixed margin (12%–23%). At 6.75% prime with a 16% margin, your APR is 22.75%. When prime dropped 1.75% from 8.50%, a $5,000 balance saved about $88/year in interest. Changes appear on your next billing statement.
What is the relationship between the prime rate and the federal funds rate?
Prime rate = federal funds rate upper bound + 3.00%. This 3-point spread has held since 1994. When the FOMC raises or lowers the fed funds rate, banks adjust prime by the same amount within one business day. The current fed funds target is 3.50%–3.75%, making prime 6.75%.
Related Resources
- The Prime Rate: Complete Guide — How it works and why it matters
- Prime Rate Forecast 2026 — Where rates are headed
- How the Prime Rate Affects Your Loans
- Prime Rate vs Federal Funds Rate vs SOFR
- Prime Rate History Since 1980
References
- Federal Reserve — H.15 Selected Interest Rates
- Federal Reserve — FOMC Statements and Minutes
- Federal Reserve — FOMC Meeting Calendar
- Federal Reserve — G.19 Consumer Credit
- FRED — Bank Prime Loan Rate Historical Data
- CFPB — Credit Reports and Scores
- CFPB — Small Business Lending
- SBA — 7(a) Loan Program Rate Caps
- CME Group — FedWatch Tool
- FDIC — Quarterly Banking Profile
Calculators
- Prime Rate Impact Calculator
- Credit Card Calculator
- Loan Payment Calculator
- Savings Calculator
- Variable vs Fixed Rate Calculator
- Rate History & Forecast Calculator