Hi
I have a loan of $ 169,900, for 5 years. The monthly payments are $3,475.60. The first payment was on 11/28/2000. How do I calculate the interest rate, and the remaining principal balance. Thanks for any help you can give as you can see I am very math challenged.
By theway, I called the lendor on this and they will provide the info for $100. Nice guys!
Thanks
Bob Z
Google on loan amortization. There are lots of sites out there where you can enter your payment information and they will calculate the interest rate and payment schedule for you.
Looks like an interest rate of 8.5!
If you are wondering about a refinance, do it now! You would save save several hundred a month and over 20,000 dollars!
There is NO simple formula which will give you the interest rate given the other variables but it is quite simple to use a spreadsheet to find it by using succesive approximations.
It is also extremely simple to make your own amortization sheet using any spreadsheet:
Interest rate: 8.375832
Monthly payment: 3475.60
End of Interest Principal Principal
Month # accrued amort. Owed
0 169900.00
1 1185.88 2289.72 167610.28
2 1169.90 2305.70 165304.57
3 1153.80 2321.80 162982.78
4 1137.60 2338.00 160644.77
5 1121.28 2354.32 158290.45
6 1104.85 2370.75 155919.70
7 1088.30 2387.30 153532.40
8 1071.63 2403.97 151128.43
9 1054.86 2420.74 148707.69
10 1037.96 2437.64 146270.04
11 1020.94 2454.66 143815.39
12 1003.81 2471.79 141343.60
13 986.56 2489.04 138854.56
14 969.19 2506.41 136348.14
15 951.69 2523.91 133824.23
16 934.07 2541.53 131282.71
17 916.33 2559.27 128723.44
18 898.47 2577.13 126146.32
19 880.48 2595.12 123551.20
20 862.37 2613.23 120937.97
21 844.13 2631.47 118306.50
22 825.76 2649.84 115656.66
23 807.27 2668.33 112988.33
24 788.64 2686.96 110301.37
25 769.89 2705.71 107595.66
26 751.00 2724.60 104871.06
27 731.99 2743.61 102127.45
28 712.84 2762.76 99364.68
29 693.55 2782.05 96582.63
30 674.13 2801.47 93781.17
31 654.58 2821.02 90960.15
32 634.89 2840.71 88119.44
33 615.06 2860.54 85258.90
34 595.10 2880.50 82378.39
35 574.99 2900.61 79477.78
36 554.74 2920.86 76556.93
37 534.36 2941.24 73615.68
38 513.83 2961.77 70653.91
39 493.15 2982.45 67671.46
40 472.34 3003.26 64668.20
41 451.37 3024.23 61643.98
42 430.27 3045.33 58598.64
43 409.01 3066.59 55532.05
44 387.61 3087.99 52444.06
45 366.05 3109.55 49334.51
46 344.35 3131.25 46203.26
47 322.49 3153.11 43050.15
48 300.48 3175.12 39875.04
49 278.32 3197.28 36677.76
50 256.01 3219.59 33458.16
51 233.53 3242.07 30216.10
52 210.90 3264.70 26951.40
53 188.12 3287.48 23663.92
54 165.17 3310.43 20353.49
55 142.06 3333.54 17019.95
56 118.80 3356.80 13663.15
57 95.37 3380.23 10282.92
58 71.77 3403.83 6879.09
59 48.02 3427.58 3451.51
60 24.09 3451.51 0.00
= = = = = = = = = = = = = =
Totals: 38636.00 169900.00
8.36% might not be a bad rate. It depends on the other factors of the loan.