RATE

Calculates the interest rate per period of an annuity investment based on constant-amount periodic payments and the assumption of a constant interest rate.

RATE(nper, pmt, pv, fv, type, guess)

Parameters

• nper - The total number of payments for the annuity investment.
• pmt - The amount of each payment for the annuity investment.
• pv - The present value, or the total amount of the annuity investment.
• fv - The future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0. (optional)
• type - The number 0 or 1 and indicates when payments are due. If type is omitted, it is assumed to be 0. (optional)
• guess - An estimate of the interest rate. If guess is omitted, it is assumed to be 0.1 (10%). (optional)

Examples

RATE(12, -100, 10000)

Result: -0.23

Note: Calculates the interest rate per period of an annuity investment with 12 monthly payments of -$100 and a present value of $10,000.