Excel RATE Function
- nper - The total number of payment periods.
- pmt - The payment made each period.
- pv - The present value, or total value of all loan payments now.
- fv - [optional] The future value, or desired cash balance after last payment. Default is 0.
- type - [optional] When payments are due. 0 = end of period. 1 = beginning of period. Default is 0.
- guess - [optional] Your guess on the rate. Default is 10%.
RATE is calculated by iteration. If the results of RATE do not converge within 20 iterations, RATE returns the #NUM! error value.
You must be consistent with units for guess and nper. If you make monthly payments on a five-year loan at 10 percent annual interest, use 10%/12 for guess and 5*12 for nper. If you make annual payments on the same loan, use 10% for guess and 5 for nper.