Purpose
Get equivalent interest rate for growth
Return value
Calculated interest rate
Syntax
=RRI(nper,pv,fv)- nper - Number of periods.
- pv - Present value of investment.
- fv - Future value of investment.
Using the RRI function
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 function examples
CAGR formula examples
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 ending balance, assuming profits are reinvested each year, and interest compounds...
Effective annual interest rate
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 EFFECT function calculates the effective annual interest rate based on the...
Related functions
GEOMEAN Function
The Excel GEOMEAN function returns the geometric mean for a set of numeric values. Geometric mean can be used to calculate average rate of return with variable rates.
