# Calculating Monthly Rate of Interest for Home Loan given EMI, Interest and Principal Amount

I have taken a loan with below details:

Loan Start Date: 6th July 2012

EMI Date: 5th Day of Every Month (Initially 21000 and later 22000 per month)

Tenure: 20 Years (This decreases based on the extra amount I pay over and above the EMI)

Interest Charged Date: Last Calendar Day of Every Month

The amount of Interest Charged every month goes up or down based on:
a) Change in Rate of Interest and
b) Remaining Principal Amount

Sometimes I also pay some extra amount over and above the monthly EMI.

The excel sheet below contains all the data I have from my bank statement.

My Loan Data Spreadsheet

I want to calculate the rate of interest for every month based on which the Interest for that month was calculated. The bank does not maintain this information in the statement.

Could someone please help me with this. Getting the monthly ROI will help me in deriving how much should I pay over and above the monthly EMI to pay off my loan as soon as possible.

Thanks for reading!

## 1 Answer

You just need to subtrauct from the payment the diference in the principal and than the rest is interest - $P_i$. The rate is calculated as: ${12}\times{P_i/Principal_at_begining of_month/100}$.

To answer your question, just pay the principal as high as you can each month and this way you will move fastest to conclusion.