The RATE function calculates the interest rate per period. If the timescale is monthly, then the rate calculated is monthly.

Payments paid out (c) are recorded as a negative figure or can be zero, in which case all the interest is compounded and included in the lump sum (f) you get at the end. The payments include both an element of interest and an element of capital.

Cash outflows (p) such as investments are entered as negative numbers. If you're taking out a loan, this is a cash inflow so is entered as a positive number.

## Syntax

RATE(n ,c, p, [,f] [,t] [,e])

where:

- n: Number: Number of periods
- c: Number: Equal payments paid out each period during the course of the investment term.
- p: Number: Present value or the initial investment.
- f: Number: Future residual value at the end of the term (optional).
- t: Number: 0 or omitted means payments are made at the start of each period, 1 or non-zero means payments are made at the end of each period (optional).
- e: Number: Estimate of what the rate will be (optional).

## Format

Input Format | Output Format |
---|---|

n: Number c: Number: Decimal p: Number: Decimal f: Number: Decimal t: Number: Binary e: Number: Decimal |
Number |

## Arguments

The function uses the following arguments:

- n: Number: Numeric line item, property, or expression
- c: Number: Numeric line item, property, or expression
- p: Number: Numeric line item, property, or expression
- [f]: Number: Numeric line item, property, or expression
- [t]: Number: Numeric line item, property, or expression
- [e]: Number: Numeric line item, property, or expression

## Constraints

The function has no constraints.

## Excel equivalent

## Example

To convert a monthly rate to the equivalent annual rate, use the following formula:

Annual rate =(1+ Rate)12

All detail time periods are treated as equal length.