## 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**.