### RATE Function Excel

This Excel Tutorial demonstrates how to use the Excel RATE Function in Excel to calculate the interest rate of an investment, with formula examples.

## RATE Function Description:

The RATE Function Calculates the interest Rate.

## Formula Examples: Example Formula Result
End of Period Payment =RATE(C5,D5,E5,F5,G5) 8.00000000013403E-02
Beg of Period Payment =RATE(C6,D6,E6,F6,G6) 7.99999999999998E-02

## Syntax and Arguments:

The Syntax for the RATE Formula is:

### Function Arguments ( Inputs ):

nper – The total number of payment periods

pmt – The payment amount. Payment must remain constant.

pv – The present value. 0 if ommitted.

fv

type – The payment type. 1 for beginning of period. 0 for end of period (default if ommitted).

guess

Use the RATE Function to calculate the interest rate of an investment.

For PMT, cash out-flows are negative. Cash In-flows are positive.

The result of the RATE Function may appear as a decimal. Change the cell Number Formatting to Percentage to display the function result as a percentage: ## RATE Examples in VBA

You can also use the RATE function in VBA. Type:
`application.worksheetfunction.rate(nper,pmt,pv,fv,type,guess)`
For the function arguments (nper, etc.), you can either enter them directly into the function, or define variables to use instead.

## How to use the RATE Function in Excel:

To use the AND Excel Worksheet Function, type the following into a cell:
`=AND(`
After entering it in the cell, notice how the AND formula inputs appear below the cell: You will need to enter these inputs into the function. The function inputs are covered in more detail in the next section. However, if you ever need more help with the function, after typing “=RATE(” into a cell, without leaving the cell, use the shortcut CTRL + A (A for Arguments) to open the “Insert Function Dialog Box” for detailed instructions:  