# Excel Function : RATE

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## Excel Function : RATE

Financial

###### Description

Returns the interest rate per period of an annuity

## Syntax and Description of the RATE Excel Function

The RATE function in Microsoft Excel is used to calculate the interest rate per period of an investment. The function takes the following arguments: RATE(nper, pmt, pv, [fv], [type], [guess]) where: nper: the number of periods of the investment pmt: the payment made each period pv: the present value of the investment fv: the future value of the investment type: the type of the investment, 0 for a regular investment, 1 for an investment with payments at the beginning of each period guess: an estimate of the interest rate per period

## About RATE Excel Function

The RATE function is used to calculate the periodic interest rate required to pay off a loan or to earn a certain amount of interest on an investment. The syntax for the RATE function is as follows: RATE(nper, pmt, pv, [fv], [type], [guess]) where: nper: The number of periods over which the loan or investment is paid or held. pmt: The periodic payment amount. pv: The present value of the loan or investment. fv: The future value of the loan or investment. type: The number 0 or 1 to indicate when payments are due. guess: An