Finance

Find the interest rate on a loan

How it works in Excel

• B1*12 is the number of monthly payments.
• -B2 is the monthly payment.
• B3 is the loan amount.
• Multiplying by 12 turns the monthly rate into a yearly one.
• Format the cell as a percentage.
• Excel finds this by trial and error, and rarely can't find an answer.

The idea in general

If you know what you borrowed and what you pay, the rate is the only unknown left.

What I assumed

• The years are in B1, the monthly payment is in B2 and the loan is in B3.

Check the result on your own data before relying on it.