RATE Function
Calculate the interest rate per period of an annuity using the RATE function.
Task:
You are evaluating a loan and want to know the interest rate. Calculate the interest rate per period in cell B7 using the RATE function, given the number of periods, payment, and present value.
Interactive Spreadsheet
Hints
+5 XPno-hints bonusSolve it on your own to keep the bonus. Each hint gets one step closer to the formula.
Variations of RATE
0/3The same formula in the other shapes it takes at work.
- RATE Function
Calculate the interest rate per period of an annuity using the RATE function.
CoreAdvanced - RATE on monthly payments, as a yearly rate
RATE answers per period; multiply by 12 for the figure on the advert.
Advanced - RATE for the growth of a single investment
No payments in between: start value, end value, years.
Advanced
The data in this exercise
This is the grid you start with. Cell references in the task — B6, C2 — point at the row numbers and column letters below.
| A | B | |
|---|---|---|
| 1 | Parameter | Value |
| 2 | Nper | 360 |
| 3 | Pmt | -1073.64 |
| 4 | Pv | 200000 |
| 5 | Fv | 0 |
| 6 | Type | 0 |
| 7 | RATE |
Functions used here
What this exercise teachesMay contain the answer
The RATE function is essential for financial analysis, allowing you to determine the interest rate of a loan or investment, which is crucial for comparing different options.