# RATE

Formulas / RATE
Calculates the periodic interest rate of an annuity.
`=RATE(nper, pmt, pv, [fv], [type], [guess])`
• nper - total number of payment periods in an annuity
• pmt - payment made each period
• pv - present value
• fv - [OPTIONAL] future value
• type - [OPTIONAL] number 0 or 1 indicating when payments are due
• guess - [OPTIONAL] guess for the final rate

## Examples

• `=RATE(60,-93.22,5000)`

The RATE function can be used to calculate the annual interest rate of a loan given the total number of payments, the payment amount, and the loan amount. For example, to calculate the annual interest rate of a \$5000 loan with \$93.22 monthly payments over 60 payments, you would enter the above formula into a Sourcetable cell:

• This will return a value of 4.5%, which is the annual interest rate.

## Summary

The RATE function is an important financial function in Sourcetable that allows users to calculate the annuity's interest rate per period.

• The RATE function calculates the periodic interest rate for an annuity and can be used to derive the annual interest rate through multiplication. It uses an iterative calculation and throws a #NUM! error if it does not converge in 20 iterations.
• The RATE function requires the fv argument if there is no pmt argument and requires consistent values for nper and guess.

What is the RATE function?
The RATE function is a financial function in Sourcetable that determines the periodic interest rate of an annuity.
How can I use the RATE function?
The RATE function can be used to analyze borrowing and investing at a given rate, as well as to calculate the annual interest rate via multiplication.
What happens if the RATE function does not converge?
The RATE function throws a #NUM! error if it does not converge in 20 tries.
How can I help the RATE function converge?
The RATE function accepts a guess argument which may be changed to help the RATE function converge.
What happens if a non-numerical argument is passed to the RATE function?
The RATE function throws a #VALUE! error if a non-numerical argument is passed to it.