Returns a Double specifying the interest rate per period for an annuity.

## Syntax

**Rate**(*nper*, *pmt*, *pv*, [ *fv*, [ *type*, [ *guess* ]]])

The **Rate** function has these named arguments:

Part | Description |
---|---|

nper |
Required. Double specifying total number of payment periods in the annuity. For example, if you make monthly payments on a four-year car loan, your loan has a total of 4 * 12 (or 48) payment periods. |

pmt |
Required. Double specifying payment to be made each period. Payments usually contain principal and interest that doesn't change over the life of the annuity. |

pv |
Required. Double specifying present value, or value today, of a series of future payments or receipts. For example, when you borrow money to buy a car, the loan amount is the present value to the lender of the monthly car payments you'll make. |

fv |
Optional. Variant specifying future value or cash balance you want after you make the final payment. For example, the future value of a loan is $0 because that's its value after the final payment. However, if you want to save $50,000 over 18 years for your child's education, $50,000 is the future value. If omitted, 0 is assumed. |

type |
Optional. Variant specifying a number indicating when payments are due. Use 0 if payments are due at the end of the payment period, or use 1 if payments are due at the beginning of the period. If omitted, 0 is assumed. |

guess |
Optional. Variant specifying value you estimate will be returned by Rate. If omitted, guess is 0.1 (10 percent). |

## Remarks

An annuity is a series of fixed cash payments made over a period of time. An annuity can be a loan (such as a home mortgage) or an investment (such as a monthly savings plan).

For all arguments, cash paid out (such as deposits to savings) is represented by negative numbers; cash received (such as dividend checks) is represented by positive numbers.

**Rate** is calculated by iteration. Starting with the value of *guess*, **Rate** cycles through the calculation until the result is accurate to within 0.00001 percent. If **Rate** can't find a result after 20 tries, it fails. If your guess is 10 percent and **Rate** fails, try a different value for *guess*.

## Example

This example uses the **Rate** function to calculate the interest rate of a loan given the total number of payments (`TotPmts`

), the amount of the loan payment (`Payment`

), the present value or principal of the loan (`PVal`

), the future value of the loan (`FVal`

), a number that indicates whether the payment is due at the beginning or end of the payment period (`PayType`

), and an approximation of the expected interest rate (`Guess`

).

```
Dim Fmt, FVal, Guess, PVal, Payment, TotPmts, PayType, APR
Const ENDPERIOD = 0, BEGINPERIOD = 1 ' When payments are made.
Fmt = "##0.00" ' Define percentage format.
FVal = 0 ' Usually 0 for a loan.
Guess = .1 ' Guess of 10 percent.
PVal = InputBox("How much did you borrow?")
Payment = InputBox("What's your monthly payment?")
TotPmts = InputBox("How many monthly payments do you have to make?")
PayType = MsgBox("Do you make payments at the end of the month?", _
vbYesNo)
If PayType = vbNo Then PayType = BEGINPERIOD Else PayType = ENDPERIOD
APR = (Rate(TotPmts, -Payment, PVal, FVal, PayType, Guess) * 12) * 100
MsgBox "Your interest rate is " & Format(CInt(APR), Fmt) & " percent."
```