Trying to figure out interest rate

[bimmerman]

Hi All!

I am trying to reverse engineer a mortgage calculation to output what the interest rate is.

I have the following variables:

• Loan Amount
  Loan Term
  Payment Amount

I wrote out this formula and even equation solvers online say they can't come up with an answer. The 'x' variable is what I need to figure out to solve for in excel somehow. Any help would be GREATLY appreciated! Thank you!!

3167=625000 * [x/12(1+x/12)^360] / [(1+x/12)^360-1]

'x' in this case is .045 (4.5%)


I know this can be done as evidenced by this link: http://extloancalculator.com/calcula...alculator.html

[tim201110]

Try function PMT, solver works.

[MrShorty]

I have to defer to someone better at financials to know if it is the appropriate function. If the PMT() function is appropriate for the payment, then the RATE() function should be appropriate for the interest rate. List of Excel's financial functions: https://support.office.com/en-us/art...rs=en-US&ad=US