- 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%.
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.