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RATE function

RATE(NumberOfPeriods, Payment, PresentValue, FutureValue?, Type?, Guess?) RATE(NumberOfPeriods; Payment; PresentValue; FutureValue?; Type?; Guess?)

NumberOfPeriods

Number or { Number }

The total number of payment periods in the term.

Payment

Number or { Number }

The payment made each period. If set to 0, the value of the futureValue parameter is used instead.

PresentValue

Number or { Number }

The lump sum payment at the start of the term.

FutureValue

Number or { Number } (optional)

The cash balance to be attained at the end of the term. If omitted, it is assumed to be 0.

Type

Number or { Number } (optional)

0 if payments are made at the end of each period and 1 if payments are made at the start of each period (including a payment at the start of the term). If omitted, it is assumed to be 0.

Guess

Number or { Number } (optional)

A guess of the interest rate. If omitted, 10% (0.1) is assumed.

Returns

Number or { Number }

The interest rate of an annuity.

Returns the interest rate of an annuity.

Example

RATE(3, -1000, 0, 3152, 0, 10%)RATE(3; -1000; 0; 3152; 0; 10%)

Returns roughly 4.98%. Let's assume that you pay $1,000 at the end of each year for three years, and receive $3,152 at the end of the term. The interest rate of the annuity is roughly 4.98%.

Partly derived from the OpenOffice.org documentation, licensed under the Apache License 2.0.