# Documentation/Calc Functions/RRI

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RRI

## Category:

Financial Analysis

## Summary:

Calculates the interest rate resulting from the profit (return) of an investment.

RRI(P; PV; FV)

## Returns:

Returns a positive real number (expressed as a percentage) which is an equivalent interest rate when an investment,PV, increases in value to FV in P number of periods.

## Arguments:

P is a positive real number or a reference to the cell containing that number which is the number of periods needed for calculating the interest rate.

PV is a real number or a reference to the cell containing that number which is the present (current) value. The cash value is the deposit of cash or the current cash value of an allowance in kind. As a deposit value, a positive value must be entered; the deposit must not be 0 or <0.

FV is a real number or a reference to the cell containing that number which determines what is desired as the cash value of the deposit.

• If P is less than or equal to 0 then the function returns an error value.
• If only one of PV or FV is a negative real number and then the function may return a numeric (#NUM!) error depending on the value of P being passed.

## Additional details:

• The formula for RRI is:

## Examples:

Formula Description Returns
=RRI(4;7500;10000) For four periods (years) and a cash value of 7,500 currency units, the interest rate of the return is to be calculated if the future value is 10,000 currency units. 7.46%
=RRI(4;7500;10000) For four periods (years) and a cash value of 7,500 currency units, the interest rate of the return is to be calculated if the future value is 10,000 currency units. 7.46%
=RRI(0.7;-500;5000) The function returns a numeric error since there is a negative number raised to odd root. (-10)^(1/7) #NUM!

RRI