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syntax:functions:rate

# Rate(num_per, payment, curr_val)

Category: Number (Financial) function

## Description

This function calculates the interest rate per period of an annuity.

Optional future value (fut_val) argument.

`rate(num_per, payment, curr_val, fut_val)`

Optional payments due (pay_due) argument.

`rate(num_per, payment, curr_val, fut_val, pay_due)`

## Arguments

ArgumentTypeDescription
num_perNumberThe number of payments of the annuity (usually in months or years).
paymentNumber (negative)The payment made each period (that does not change), entered as a negative value. Includes principal
and interest, but no fees or taxes.
curr_valNumberThe current value of the annuity.
fut_valNumberOptional. The future value, or cash balance, to be achieved after the last payment (i.e., "0" to pay the loan
off in full). The default, if not supplied, is 0.
pay_dueBinary (0 or 1)Optional. This value defines when payments are due. Options: 0 (the beginning of the period; default),
or 1 (the end of the period).

Return value type: Number

## Remarks

For an accurate calculation, be sure to convert num_per to the time period desired. If calculating a monthly rate and num_per is given as years, multiply by 12 (num_per * 12).

## Examples

Calculate the annual interest rate: Number of periods is 3 years, payment desired is \$7500 per year, value is \$20,000, (final value = default, 0).

`rate(3, -7500, 20000) //Returns 0.06 (or 6%) (annual interest rate, rounded)`

Calculate the monthly interest rate: Number of periods is 48 months, payment desired is \$350 per month, value is \$10,000, final value is 0 (paid off).

`rate(48, -350, 10000, 0)  //Returns 0.02 (or 2%) (monthly interest rate, rounded)`

Calculate the monthly interest rate: Number of periods is 5 years (60 months), payment desired is \$5200 per month, value is \$150,000, final value is 0 (paid off), with payments due at the end of the period.

`rate(60, -5200, 150000, 0, 1)  //Returns 0.03 (or 3%) (monthly interest rate, rounded)` 