RATE
Last updated
Last updated
The RATE function returns the interest rate per period of a loan or an investment.
RATE (Nper, PMT, PV?, FV?, Type?, Guess?) - > Number
| Arguments | Datatype | Description |
|---|---|---|
Consider a series of $2000 payments made at the end of each month for 1 year. The objective is to calculate the interest rate per month where the present value is $20,000.
| Periods | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
To calculate the Interest Rate, the formula should be:
RATE(12,[Payments made],[Present Value],0)
The interest rate is calculated to be 2.92%
Nper
Number
The total number of periods.
PMT
Number/ Node reference
The payment made each period.
PV?
Number/ Node reference
The total amount that a series of future payments is worth now.
FV?
Number/ Node reference
The future value or a cash balance you want to attain after the last payment is made. This is an optional argument.
Type?
Number
Indicates when the payments are made. Type is zero if payments are made at the end of the period and non-zero if payments are made at the start of the period.
Guess?
Number
Estimate of what the rate will be. This is an optional argument.
Present Value
-20000
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-
-
-
-
-
-
-
-
-
-
-
Payments made
-
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000