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Spreadsheet Mathematical Functions

Function Wizard Functions

RATE

Description: Returns per period the interest rate of an annuity. RATE is calculated by iteration and can have zero or more solutions. If the successive results of RATE do not converge to within 0.0000001 after 100 iterations, RATE returns the #NUM! error value.

Syntax: RATE(Nper, Pmt, PV, [FV], [Type], [Guess])

For a complete description of the arguments Nper, Pmt, PV, FV, and Type, see the PV function.

Set Type equal to If payments are due
0 or omitted At the end of the period
1 At the beginning of the period

If you omit Guess, it is assumed to be 10 percent.

If RATE does not converge, try different values for Guess. RATE usually converges if Guess is between 0 and 1.

Remarks:

Example:

Suppose you have a four-year $8,000 loan with monthly payments of $200.

 

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