--- title: "RATE function in Excel: syntax and examples | PracticeExcel" description: "How to use RATE in Excel and Google Sheets: the interest rate on a loan from its payments, and the annual rate from a monthly one." canonical_url: "https://practiceexcelonline.com/functions/rate" locale: en meta: "og:description": "How to use RATE in Excel and Google Sheets: the interest rate on a loan from its payments, and the annual rate from a monthly one." "og:image": "https://practiceexcelonline.com/_og/d/c_Page%2Ctitle_~UkFURSBmdW5jdGlvbiBpbiBFeGNlbDogc3ludGF4IGFuZCBleGFtcGxlcw%2Cdescription_~SG93IHRvIHVzZSBSQVRFIGluIEV4Y2VsIGFuZCBHb29nbGUgU2hlZXRzOiB0aGUgaW50ZXJlc3QgcmF0ZSBvbiBhIGxvYW4gZnJvbSBpdHMgcGF5bWVudHMsIGFuZCB0aGUgYW5udWFsIHJhdGUgZnJvbSBhIG1vbnRobHkgb25lLg%2Ceyebrow_Excel%2Bfunctions%2Csite_practiceexcel%2Ccode_~UkFURShucGVyLCBwbXQsIHB2LCBbZnZdLCBbdHlwZV0sIFtndWVzc10p%2Cp_Ii9mdW5jdGlvbnMvcmF0ZSI%2Cs_igOpl5SNyAWI8_w7.png" "og:image:height": "600" "og:image:type": image/png "og:image:width": "1200" "og:title": "RATE function in Excel: syntax and examples | PracticeExcel" "twitter:image": "https://practiceexcelonline.com/_og/d/c_Page%2Ctitle_~UkFURSBmdW5jdGlvbiBpbiBFeGNlbDogc3ludGF4IGFuZCBleGFtcGxlcw%2Cdescription_~SG93IHRvIHVzZSBSQVRFIGluIEV4Y2VsIGFuZCBHb29nbGUgU2hlZXRzOiB0aGUgaW50ZXJlc3QgcmF0ZSBvbiBhIGxvYW4gZnJvbSBpdHMgcGF5bWVudHMsIGFuZCB0aGUgYW5udWFsIHJhdGUgZnJvbSBhIG1vbnRobHkgb25lLg%2Ceyebrow_Excel%2Bfunctions%2Csite_practiceexcel%2Ccode_~UkFURShucGVyLCBwbXQsIHB2LCBbZnZdLCBbdHlwZV0sIFtndWVzc10p%2Cp_Ii9mdW5jdGlvbnMvcmF0ZSI%2Cs_igOpl5SNyAWI8_w7.png" --- > Index of every page on this site: [llms.txt](https://practiceexcelonline.com/llms.txt) # **The RATE function** Returns the interest rate per period of a loan or investment, from the number of payments, the payment and the amount. Multiply by 12 to get the annual rate on monthly payments. = RATE( ## **Syntax** ``` RATE(nper, pmt, pv, [fv], [type], [guess]) ```
**nper **
The number of payments.
**pmt **
The payment each period, negative for money paid out. Use 0 for none.
**pv **
The amount today, such as the loan amount.
**fv **(optional)
The amount at the end. Left out, 0.
**type **(optional)
0 or left out if payments are made at the end of each period, 1 if at the start.
**guess **(optional)
A starting guess for the rate. Left out, 10%. Only needed when RATE cannot find an answer.
## **Examples** B1=RATE(60,-300,15000)\*12 | | A | B | | --- | --- | --- | | 1 | | **0.074200958** | B1`=RATE(110,20,3-10000,420000)` | | A | B | | --- | --- | --- | | 1 | | **0.071773463** | **In plain words:** The yearly rate that turns 310,000 paid in today into 420,000 after 110 years, 2with no payments along the way. D1=RATE(B3\*12,-B2,B1)\*12 | | A | B | C | D | | --- | --- | --- | --- | --- | | 1 | Loan amount | 18000 | | **0.062396772** | | 2 | Monthly payment | 350 | | | | 3 | Years | 5 | | | ## **Questions**
### Why is the rate from RATE so small? RATE returns the rate per period. With monthly payments that is a monthly rate; multiply by 12 for the annual rate, and format the cell as a percentage.
### Why does RATE return RATE searches for the answer step by step and can give up. Check that the payment and the amount have opposite signs, and give a guess, such as 0.01, as the last argument.
## **Related functions** - [**PMT**](https://practiceexcelonline.com/functions/pmt) - [**NPER**](https://practiceexcelonline.com/functions/nper) - [**IRR**](https://practiceexcelonline.com/functions/irr) - [**FV**](https://practiceexcelonline.com/functions/fv) ```json {"@context":"https://schema.org","@graph":[{"@id":"https://practiceexcelonline.com/#identity","@type":"Organization","name":"PracticeExcel","url":"https://practiceexcelonline.com/","logo":{"@id":"https://practiceexcelonline.com/#logo"}},{"@id":"https://practiceexcelonline.com/#website","@type":"WebSite","inLanguage":"en-US","name":"PracticeExcel","url":"https://practiceexcelonline.com/","alternateName":["Practice Excel Online","PracticeExcelOnline.com"],"publisher":{"@id":"https://practiceexcelonline.com/#identity"},"workTranslation":{"@id":"https://excelopgaver.dk/#website"}},{"@id":"https://practiceexcelonline.com/functions/rate#webpage","description":"How to use RATE in Excel and Google Sheets: the interest rate on a loan from its payments, and the annual rate from a monthly one.","name":"RATE function in Excel: syntax and examples","url":"https://practiceexcelonline.com/functions/rate","@type":["WebPage","FAQPage"],"breadcrumb":{"@id":"https://practiceexcelonline.com/functions/rate#breadcrumb"},"isPartOf":{"@id":"https://practiceexcelonline.com/#website"},"mainEntity":[{"@id":"https://practiceexcelonline.com/functions/rate#/schema/question/1"},{"@id":"https://practiceexcelonline.com/functions/rate#/schema/question/2"}],"potentialAction":[{"@type":"ReadAction","target":["https://practiceexcelonline.com/functions/rate"]}],"primaryImageOfPage":{"@id":"https://practiceexcelonline.com/#logo"}},{"@id":"https://practiceexcelonline.com/functions/rate#breadcrumb","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","name":"Home","item":"https://practiceexcelonline.com","position":1},{"@type":"ListItem","name":"Excel functions","item":"https://practiceexcelonline.com/functions","position":2},{"@type":"ListItem","name":"RATE function in Excel: syntax and examples","position":3}]},{"@id":"https://practiceexcelonline.com/functions/rate#article","description":"How to use RATE in Excel and Google Sheets: the interest rate on a loan from its payments, and the annual rate from a monthly one.","headline":"RATE function in Excel: syntax and examples","inLanguage":"en-US","thumbnailUrl":"https://practiceexcelonline.com/_og/d/c_Page%2Ctitle_~UkFURSBmdW5jdGlvbiBpbiBFeGNlbDogc3ludGF4IGFuZCBleGFtcGxlcw%2Cdescription_~SG93IHRvIHVzZSBSQVRFIGluIEV4Y2VsIGFuZCBHb29nbGUgU2hlZXRzOiB0aGUgaW50ZXJlc3QgcmF0ZSBvbiBhIGxvYW4gZnJvbSBpdHMgcGF5bWVudHMsIGFuZCB0aGUgYW5udWFsIHJhdGUgZnJvbSBhIG1vbnRobHkgb25lLg%2Ceyebrow_Excel%2Bfunctions%2Csite_practiceexcel%2Ccode_~UkFURShucGVyLCBwbXQsIHB2LCBbZnZdLCBbdHlwZV0sIFtndWVzc10p%2Cp_Ii9mdW5jdGlvbnMvcmF0ZSI%2Cs_igOpl5SNyAWI8_w7.png","@type":["Article","TechArticle"],"author":{"@id":"https://practiceexcelonline.com/#identity"},"image":{"@id":"https://practiceexcelonline.com/#/schema/image/1"},"isPartOf":{"@id":"https://practiceexcelonline.com/functions/rate#webpage"},"mainEntityOfPage":{"@id":"https://practiceexcelonline.com/functions/rate#webpage"},"publisher":{"@id":"https://practiceexcelonline.com/#identity"}},{"@id":"https://practiceexcelonline.com/functions/rate#/schema/question/1","@type":"Question","inLanguage":"en-US","name":"Why is the rate from RATE so small?","acceptedAnswer":{"@type":"Answer","text":"RATE returns the rate per period. 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