Calculate Interest Rate for Amortization Schedule

Arrushing

New Member
Joined
Jun 9, 2020
Messages
3
Office Version
  1. 365
Platform
  1. Windows
I'm trying to calculate the interest rate for an fixed rate amortization schedule using the known factors below:

- Principal Balance
- Term
- Total Interest Paid

Currently the formula that I have found requires the payment in its' formula, however this is an unknown factor with what I'm trying to accomplish.

Is there another formula that includes total interest paid instead of the monthly payment amount in it's calculation? If not, how can I back into calculating this?

Any help would be much appreciated.
 

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Select range and press Ctrl+Shift+2 to format cells as time. (Shift 2 is the @ sign).

Dave Patton

Well-known Member
Joined
Feb 15, 2002
Messages
4,672
Office Version
  1. 365
  2. 2010
Platform
  1. Windows
T202006a.xlsm
ABC
1Principal500,000.00
2Term25
3Total interest505,000.00
4Payment3,350.00
5Rate0.54%6.47%
6
7Payment$3,350.00
6a
Cell Formulas
RangeFormula
B4B4=(B1+B3)/(B2*12)
B5B5=RATE(B2*12,-B4,B1,0,1,0.01)
C5C5=B5*12
B7B7=PMT(C5/12,B2*12,-B1,0,1)
 

Arrushing

New Member
Joined
Jun 9, 2020
Messages
3
Office Version
  1. 365
Platform
  1. Windows
Awesome!! Thank you Dave, this is perfect!!
 

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