Documentation/Calc Functions/INTRATE

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Function name:

INTRATE

Category:

Financial Analysis

Summary:

Calculates the annual interest rate that results when a security (or other items) is purchased at an investment value and sold at a redemption value. No interest is paid.

Syntax:

INTRATE(Settlement; Maturity; Investment; Redemption; Basis)

Returns:

Returns a real number which is the interest rate of fully vested security with the given parameters.

Arguments:

Settlement is a date or a reference to a cell containing that date which is the date at which the interest accrued up until then is to be calculated.

Maturity is a date or a reference to a cell containing that date which is the date on which the security matures (expires).

Investment is a positive real number or a reference to the cell containing that number which is the purchase price.

Redemption is a positive real number or a reference to the cell containing that number which is the redemption value of the security per 100 currency units of par value.

Basis is a positive integer from 0 to 4 or a reference to a cell containing that integer which is chosen from a list of options and indicates how the year is to be calculated. For more information, visit Wikipedia's Day count convention page.

Basis Calculation
0 or missing US method (NASD), 12 months of 30 days each
1 Exact number of days in months, exact number of days in year.
2 Exact number of days in month, year has 360 days.
3 Exact number of days in month, year has 365 days.
4 European method, 12 months of 30 days each.


  • If either Investment or Redemption is less than or equal to 0 then the function returns an error value.
  • If either Settlement or Maturity are not valid dates then the function returns an value(#VALUE!) error.
  • If Settlement date is after the Maturity date then the function returns an error value.
  • If Basis is a non-integer value, then the function uses its floor value, i.e. it is truncated to an integer value.
  • After truncation if Basis is ny number except 0,1,2,3,4 or missing(passed as empty argument or not passed at all),then the function will return an error value.

Additional details:

  • The formula for INTRATE is:
Intrate.png

Examples:

Formula Description Returns
=INTRATE("1990-01-15"; "2002-05-05"; 1000000; 2000000; 3) A painting is bought on 1990-01-15 for 1 million and sold on 2002-05-05 for 2 million. The basis is daily balance calculation (basis = 3). The function will calculate the average annual level of interest. 0.081237480525262 or 8.12%
=INTRATE("1990-01-15"; "2002-05-05"; 1000000; 2000000) A painting is bought on 1990-01-15 for 1 million and sold on 2002-05-05 for 2 million. The basis is daily balance calculation (basis = 0 by default). The function will calculate the average annual level of interest. 0.081264108352145 or 8.13%
=INTRATE("1990-01-15.05"; "2002-05-05"; 1000000; 2000000; 3) The function returns an error value if either Settlement or Maturity are not valid dates. #VALUE!
=INTRATE("1990-01-15"; "2002-05-05"; 1000000; 2000000; 3) The function returns an error when Settlement date is after the Maturity date. Err:502

Related LibreOffice functions:

RECIEVED

YEARFRAC

ODF standard:

Section 6.12.22, part 2

Equivalent Excel functions:

INTRATE