How to use the ACCRINT Function in Excel

In this article, we will learn about how to use the ACCRINT function in Excel.

ACCRINT function calculates the amount which is the periodic interest amount for a security that pays periodic interest. The mathematical formula to get the amount is shown in the image below. 

Here :

Ai = accrued days for the ith quasi-coupon period within odd period

NC = number of quasi-coupon periods that fit in odd period.

NLi = normal length in days of the quasi-coupon period within odd period.

The ACCRINT function returns the periodic interest amount for a security that pays periodic interest giving input as syntax shown below.

Syntax:

=ACCRINT(issue, first_interest, settlement, rate, par, frequency, [basis], [calc_method])

Expand:

issue : Issue date of the security

first_interest : first interest date of the security

settlement : Settlement date of the security

rate - Interest rate of security.

par - Par value of security.

frequency - payments per year 

basis - [optional] Day count basis. Default is 0 and for see  the below table.

Basis Day count basis
0 US (NASD) 30 / 360
1 actual / actual 
2 actual / 360
3 actual / 365
4 European 30 / 360

Example:

All of these might be confusing to understand. So, let's test this formula via running it on the example shown below. Here we will perform the ACCRINT function over values and significance with the numbers.

Use the formula:

=ACCRINT(C2, C3, C4, C5, C6, C7, C8, FALSE)

Here all the arguments to the function is given as cell reference. Now Press Enter to get the interest amount for security.

The function returns $125.00 periodic interest value for the par value $5000. 

Using the DATE function:

Dates in the formula must be entered using cell reference or DATE function. Excel date format creates #VALUE! error while computing results. Use the cell reference or DATE function in excel while taking date as input to the function 

Use the formula:

=ACCRINT( DATE(2019,3,5), C3, C4, C5, C6, C7, C8, TRUE)

Now as the issue date value is updated (5th March) using the DATE function the ACCRINT interest amount decreases to $116.67 for the same par value that pays periodic interest. 

Here are some observational notes using the ACCRINT function shown below.

Note:

  1. Excel stores dates as serial number and is used in calculation by the function. So it’s recommended to use dates as cell reference instead of giving direct argument to the function.
  2. Arguments settlement , issue, First_date & basis are truncated to integers.
  3. The function returns the #VALUE! Error if issue date, settlement date & first interest date date is not a valid date format.
  4. The function returns the #NUM! Error if:
    1. par is less than or equals to zero. par 0.
    2. rate is less than or equals to zero. discount 0.
    3. If basis argument is either < 0 or  > 4. 
    4. If maturity value settlement value.

Hope this article about How to use the ACCRINT function in Excel is explanatory. Find more articles on mathematical formulas here. If you liked our blogs, share it with your fristarts on Facebook. And also you can follow us on Twitter and Facebook. We would love to hear from you, do let us know how we can improve, complement or innovate our work and make it better for you. Write to us at info@exceltip.com.

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