diff --git a/pkg/tsdb/loki/loki.go b/pkg/tsdb/loki/loki.go
index de933cd2d0f..2d55c6fdcb5 100644
--- a/pkg/tsdb/loki/loki.go
+++ b/pkg/tsdb/loki/loki.go
@@ -182,38 +182,6 @@ func formatLegend(metric model.Metric, query *lokiQuery) string {
 	return string(result)
 }
 
-func parseQuery(dsInfo *datasourceInfo, queryContext *backend.QueryDataRequest) ([]*lokiQuery, error) {
-	qs := []*lokiQuery{}
-	for _, query := range queryContext.Queries {
-		model := &ResponseModel{}
-		err := json.Unmarshal(query.JSON, model)
-		if err != nil {
-			return nil, err
-		}
-
-		start := query.TimeRange.From
-		end := query.TimeRange.To
-
-		var resolution int64 = 1
-		if model.Resolution >= 1 && model.Resolution <= 5 || model.Resolution == 10 {
-			resolution = model.Resolution
-		}
-
-		step := calculateStep(query.Interval, query.TimeRange.To.Sub(query.TimeRange.From), resolution)
-
-		qs = append(qs, &lokiQuery{
-			Expr:         model.Expr,
-			Step:         step,
-			LegendFormat: model.LegendFormat,
-			Start:        start,
-			End:          end,
-			RefID:        query.RefID,
-		})
-	}
-
-	return qs, nil
-}
-
 func parseResponse(value *loghttp.QueryResponse, query *lokiQuery) (data.Frames, error) {
 	frames := data.Frames{}
 
diff --git a/pkg/tsdb/loki/loki_test.go b/pkg/tsdb/loki/loki_test.go
index ad492adebcb..02797d28a46 100644
--- a/pkg/tsdb/loki/loki_test.go
+++ b/pkg/tsdb/loki/loki_test.go
@@ -5,7 +5,6 @@ import (
 	"time"
 
 	"github.com/google/go-cmp/cmp"
-	"github.com/grafana/grafana-plugin-sdk-go/backend"
 	"github.com/grafana/grafana-plugin-sdk-go/data"
 	"github.com/grafana/loki/pkg/loghttp"
 	p "github.com/prometheus/common/model"
@@ -39,31 +38,6 @@ func TestLoki(t *testing.T) {
 
 		require.Equal(t, `http_request_total{app="backend", device="mobile"}`, formatLegend(metric, query))
 	})
-
-	t.Run("parsing query model", func(t *testing.T) {
-		queryContext := &backend.QueryDataRequest{
-			Queries: []backend.DataQuery{
-				{
-					JSON: []byte(`
-					{
-						"expr": "go_goroutines",
-						"format": "time_series",
-						"refId": "A"
-					}`,
-					),
-					TimeRange: backend.TimeRange{
-						From: time.Now().Add(-30 * time.Second),
-						To:   time.Now(),
-					},
-					Interval: time.Second * 30,
-				},
-			},
-		}
-		dsInfo := &datasourceInfo{}
-		models, err := parseQuery(dsInfo, queryContext)
-		require.NoError(t, err)
-		require.Equal(t, time.Second*30, models[0].Step)
-	})
 }
 
 func TestParseResponse(t *testing.T) {
diff --git a/pkg/tsdb/loki/parse_query.go b/pkg/tsdb/loki/parse_query.go
new file mode 100644
index 00000000000..60682799018
--- /dev/null
+++ b/pkg/tsdb/loki/parse_query.go
@@ -0,0 +1,75 @@
+package loki
+
+import (
+	"encoding/json"
+	"math"
+	"strconv"
+	"strings"
+	"time"
+
+	"github.com/grafana/grafana-plugin-sdk-go/backend"
+	"github.com/grafana/grafana/pkg/tsdb/intervalv2"
+)
+
+const (
+	varInterval   = "$__interval"
+	varIntervalMs = "$__interval_ms"
+	varRange      = "$__range"
+	varRangeS     = "$__range_s"
+	varRangeMs    = "$__range_ms"
+)
+
+func interpolateVariables(expr string, interval time.Duration, timeRange time.Duration) string {
+	intervalText := intervalv2.FormatDuration(interval)
+	intervalMsText := strconv.FormatInt(int64(interval/time.Millisecond), 10)
+
+	rangeMs := timeRange.Milliseconds()
+	rangeSRounded := int64(math.Round(float64(rangeMs) / 1000.0))
+	rangeMsText := strconv.FormatInt(rangeMs, 10)
+	rangeSText := strconv.FormatInt(rangeSRounded, 10)
+
+	expr = strings.ReplaceAll(expr, varIntervalMs, intervalMsText)
+	expr = strings.ReplaceAll(expr, varInterval, intervalText)
+	expr = strings.ReplaceAll(expr, varRangeMs, rangeMsText)
+	expr = strings.ReplaceAll(expr, varRangeS, rangeSText)
+	expr = strings.ReplaceAll(expr, varRange, rangeSText+"s")
+
+	return expr
+}
+
+func parseQuery(dsInfo *datasourceInfo, queryContext *backend.QueryDataRequest) ([]*lokiQuery, error) {
+	qs := []*lokiQuery{}
+	for _, query := range queryContext.Queries {
+		model := &ResponseModel{}
+		err := json.Unmarshal(query.JSON, model)
+		if err != nil {
+			return nil, err
+		}
+
+		start := query.TimeRange.From
+		end := query.TimeRange.To
+
+		var resolution int64 = 1
+		if model.Resolution >= 1 && model.Resolution <= 5 || model.Resolution == 10 {
+			resolution = model.Resolution
+		}
+
+		interval := query.Interval
+		timeRange := query.TimeRange.To.Sub(query.TimeRange.From)
+
+		step := calculateStep(interval, timeRange, resolution)
+
+		expr := interpolateVariables(model.Expr, interval, timeRange)
+
+		qs = append(qs, &lokiQuery{
+			Expr:         expr,
+			Step:         step,
+			LegendFormat: model.LegendFormat,
+			Start:        start,
+			End:          end,
+			RefID:        query.RefID,
+		})
+	}
+
+	return qs, nil
+}
diff --git a/pkg/tsdb/loki/parse_query_test.go b/pkg/tsdb/loki/parse_query_test.go
new file mode 100644
index 00000000000..2274c6dda0d
--- /dev/null
+++ b/pkg/tsdb/loki/parse_query_test.go
@@ -0,0 +1,54 @@
+package loki
+
+import (
+	"testing"
+	"time"
+
+	"github.com/grafana/grafana-plugin-sdk-go/backend"
+	"github.com/stretchr/testify/require"
+)
+
+func TestParseQuery(t *testing.T) {
+	t.Run("parsing query model", func(t *testing.T) {
+		queryContext := &backend.QueryDataRequest{
+			Queries: []backend.DataQuery{
+				{
+					JSON: []byte(`
+					{
+						"expr": "go_goroutines $__interval $__interval_ms $__range $__range_s $__range_ms",
+						"format": "time_series",
+						"refId": "A"
+					}`,
+					),
+					TimeRange: backend.TimeRange{
+						From: time.Now().Add(-3000 * time.Second),
+						To:   time.Now(),
+					},
+					Interval:      time.Second * 15,
+					MaxDataPoints: 200,
+				},
+			},
+		}
+		dsInfo := &datasourceInfo{}
+		models, err := parseQuery(dsInfo, queryContext)
+		require.NoError(t, err)
+		require.Equal(t, time.Second*15, models[0].Step)
+		require.Equal(t, "go_goroutines 15s 15000 3000s 3000 3000000", models[0].Expr)
+	})
+	t.Run("interpolate variables, range between 1s and 0.5s", func(t *testing.T) {
+		expr := "go_goroutines $__interval $__interval_ms $__range $__range_s $__range_ms"
+
+		interval := time.Millisecond * 50
+		timeRange := time.Millisecond * 750
+
+		require.Equal(t, "go_goroutines 50ms 50 1s 1 750", interpolateVariables(expr, interval, timeRange))
+	})
+	t.Run("parsing query model, range below 0.5s", func(t *testing.T) {
+		expr := "go_goroutines $__interval $__interval_ms $__range $__range_s $__range_ms"
+
+		interval := time.Millisecond * 50
+		timeRange := time.Millisecond * 250
+
+		require.Equal(t, "go_goroutines 50ms 50 0s 0 250", interpolateVariables(expr, interval, timeRange))
+	})
+}