 # How to Use RATE Function in Excel

RATE function is used to find the Interest rate of the data set in Excel. It requires the following arguments to calculate the interest rate.
Syntax:

=RATE (nper, pmt, pv, [fv], [type], [guess])

nper: total no. of payment period.
pmt: amount paid each period.
pv - The present value of future payments must be entered as a negative number.
fv: [optional] due future value. Default is 0
type - [optional] When payments are due. Default is 0.

Let’s use it in an example to understand it. Use the formula

=RATE(B3,B2,-B1)*12 Press Enter. The interest rate for the data set is 5%.
Hope you understood how to use RATE function to get the Interest rate of the data. Explore more articles on Accounting here. Please write your queries in the comment box below. We will help you.

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