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.
|nper||The number of periods for the investment|
|pv||The present value of the investment|
|fv||The future value of the investment|
|2||5||Investment term – years|
|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:
|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: