# RATE

Get the interest rate per period of an annuity

## Summary

The Excel RATE function is a financial function that returns the interest rate per period of an annuity.

## Purpose

Get the interest rate per period of an annuity

## Return value

the interest rate per period

## Syntax

=RATE (nper, pmt, pv, [fv], [type], [guess])

## Arguments

• nper - The total number of payment periods.
• pmt - The payment made each period.
• pv - The present value, or total value of all loan payments now.
• fv - [optional] The future value, or a cash balance you want after the last payment is made. Defaults to 0 (zero).
• type - [optional] When payments are due. 0 = end of period. 1 = beginning of period. Default is 0.
• guess - [optional] Your guess on the rate. Defaults to 10%.

## Usage notes

RATE is calculated by iteration. If the results of RATE do not converge within 20 iterations, RATE returns the #NUM! error value.

Notes:

You must be consistent with units for guess and nper. If you make monthly payments on a five-year loan at 10 percent annual interest, use 10%/12 for guess and 5*12 for nper. If you make annual payments on the same loan, use 10% for guess and 5 for nper.