# 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.

Notes:

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**.

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