The RRI function calculates the equivalent interest rate for an investment with specified present value, future value and duration.

  • This function was introduced in Excel 2013 and so is not available in earlier versions.




Argument Description
nper The number of periods for the investment
pv The present value of the investment
fv The future value of the investment


  A B C D
1 Data      
2 5 Investment term – years    
3 $10,000 Prevent value    
4 $20,000 Future value    
6 Formula Result Notes
7 =RRI(A2*12,A3,A4) 0.0116% Returns an equivalent monthly interest rate for the growth of an investment with the terms above
8 =RRI(A2*12,A3,A4)*12 14.87% Returns an equivalent annual interest rate for the growth of an investment with the terms above (0.0116% x 12)

Note: In the example, the number of years had to be converted into months (=5*12)

Note: In the above spreadsheet, cells C7 and C8 have been formatted to show percentages. If your result in C7 is showing a decimal value, e.g. 0.01161944, you need to format the cell as a percentage.

Common Function Error(s)

Problem What went wrong
#VALUE! Occurs if any of the supplied arguments are not recognized as numeric values
#NUM! Occurs if either:

  the nper or the pv argument is zero
  any of the supplied arguments are negative
Result is presented as a decimal or 0% Likely to be due to the formatting of the cell containing the function and can be fixed by formatting the cell as a percentage, with decimal places

The Excel RRI function uses the following calculation to calculate the interest rate that is equivalent to an investment:  

    \[ \frac{fv^ \frac{1}{nper}}{pv} - 1  \]