The purpose of this study was to analyze the effect of interest rates and inflation rates on stock returns in banking companies listed on the Indonesia Stock Exchange for the 2016-2020 period. The object of this research is 30 banking companies listed on the Indonesia Stock Exchange. Data collection is obtained directly from companies listed on www.idx.co.id, and analyzed quantitatively. Data analysis to see the effect of the dependent variable with the independent variable using multiple linear regression equation analysis. The results of hypothesis testing show that interest rates and inflation rates together have an effect on stock returns in the banking sector listed on the Indonesia Stock Exchange for the 2016-2020 period. The interest rate has an effect on stock returns of 0.750. The inflation rate has an effect on stock returns of 0.437. The degree of relationship (R) is 0.706. The magnitude of the influence of interest rates and inflation rates (R2) is 0.499. This means that interest rates and inflation rates affect stock returns by 49.90%.