# Documentation/Calc Functions/RATE

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## Function name:

RATE

## Category:

Financial Analysis

## Summary:

Calculates the constant interest rate per period of an annuity.

## Syntax:

RATE(**NPer**; **Pmt**; **PV**[; [**FV**][; [**Type**] [; **Guess**] ] ])

## Returns:

Returns a real number (expressed as a percentage or fraction) which is the interest rate per period of an investment for the given parametric constraints.

## Arguments:

**NPer** is a real number or a reference to the cell containing that number which is the total number of periods, during which payments are made (payment period).

**Pmt** is a real number or a reference to the cell containing that number which is the constant annuity paid in each period.

**PV** is a real number or a reference to the cell containing that number which is the present cash value in a sequence of payments.

**FV** is a real number or a reference to the cell containing that number which is the desired value (future value) at the end of the periods. If it is omitted, then the function uses 0.

**Type** is the due date of the payment at the beginning or end of each period. If it is omitted, then the function uses 0.

Type | Maturity Date |
---|---|

0 | due at the end |

1 | due at the beginning |

**Guess** is a real number or a reference to the cell containing that number which determines the estimated value of the interest with iterative calculation. If omitted, 0.1 (10%) is assumed.

- If either of
**Pmt**or**FV**is a positive real number the function will not converge and return an error value. - If
**NPer**is less than 1, the function will not converge and return an error value.

## Additional details:

- RATE solves the following equation:

## Examples:

Formula | Description | Returns |
---|---|---|

=RATE(3,-10,900,1,0,0.5) | The function calculates the constant interest rate for a payment period of 3 periods if 10 currency units are paid regularly and the present cash value is 900 currency units with future value as 1 and starting guess as 0.5. (due at the end) | -76.34% |

=RATE(3,-10,900) | The function calculates the constant interest rate for a payment period of 3 periods if 10 currency units are paid regularly and the present cash value is 900 currency units with future value as 0 and starting guess as 0.1 by default. (due at the end by default) | -75.63% |

=RATE(3,10,900,1,0,0.5) | The function will not converge since Pmt is positive real number and return a non-convergence error. |
Err:523 |

## Related LibreOffice functions:

## ODF standard:

## Equivalent Excel functions:

RATE