Excel RRI Function
Summary
The Excel RRI function returns an equivalent interest rate for the growth of an investment. You can use RRI to calculate Compound Annual Growth Rate (CAGR) in Excel.
Purpose
Get equivalent interest rate for growth
Return value
Calculated interest rate
Syntax
=RRI (nper, pv, fv)
Arguments
- nper - Number of periods.
- pv - Present value of investment.
- fv - Future value of investment.
Version
Usage notes
The RRI function returns an equivalent interest rate for the growth of an investment. For example, to use RRI to calculate equivalent annual compound interest for a 1000 investment worth 1200 after five years you can use a formula like this:
=RRI(5,1000,1200) // returns 0.037137289
In the example shown, the formula in G6 is:
=RRI(B11,C6,C11)
RRI formula examples
The Effective Annual Rate (EAR) is the interest rate after factoring in compounding. In other words, the EAR is the rate actually earned due to the effect of compounding more frequently than once a year (annually).
The...
CAGR stands for Compound Annual Growth Rate. CAGR is the average rate of return for an investment over a period of time. It is the rate of return required for an investment to grow from the starting balance to the...
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