Note: For a complete description of the arguments nper, pmt, pv, fv, and type, see PV.
The RATE function syntax has the following arguments:
The RATE function syntax has the following arguments:
Set type equal to | If payments are due |
---|---|
0 or omitted | At the end of the period |
1 | At the beginning of the period |
Make sure that you are consistent about the units you use for specifying guess and nper. If you make monthly payments on a four-year loan at 12 percent annual interest, use 12%/12 for guess and 4*12 for nper. If you make annual payments on the same loan, use 12% for guess and 4 for nper.
Copy the example data in the following table, and paste it in cell A1 of a new Excel worksheet. For formulas to show results, select them, press F2, and then press Enter. If you need to, you can adjust the column widths to see all the data.
Data | Description | |
---|---|---|
4 | Years of the loan | |
-200 | Monthly payment | |
8000 | Amount of the loan | |
Formula | Description | Result |
=RATE(A2*12, A3, A4) | Monthly rate of the loan with the terms entered as arguments in A2:A4. | 1% |
=RATE(A2*12, A3, A4)*12 | Annual rate of the loan with the same terms. | 9.24% |