### Table of Contents

# Rate(num_per, payment, curr_val)

Category: Number (Financial) function

## Description

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

## Additional syntax

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

Argument | Type | Description |
---|---|---|

num_per | Number | The number of payments of the annuity (usually in months or years). |

payment | Number (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_val | Number | The current value of the annuity. |

fut_val | Number | Optional. 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_due | Binary (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)