Excel RATE Function

Excel RATE Function


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


Get the interest rate per period of an annuity

Return value 

the interest rate per period


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


  • 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.


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.

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