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Formula for Calculating APR on FHA Loan (Excel)

Question: 
I'm working on a spreadsheet that automatically calculates the APR for a variety of loan scenarios on our loan officer's rate sheet. I'm trying to create a formula (or series of formulas) in Excel that will calculate the APR on an FHA loan with PMI. Can anyone help me with that?
Answer: 

Randy Carey

If you can figure out how to accurately calculate an APR using excel, then you are better than most people. I have never seen an Excel product that was accurate.

Answer: 

Richard Insley

All of the math is spelled out in Appendix J of Reg. Z. It's not simple. There is a general equation and several special variations, however in all cases the solution is rendered by the process of iteration.

First published on 10/20/2014

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