Rate function
Summary
Returns the interest rate per period of an annuity, given the number of periods, payment amount, present value, and (optionally) future value.
Syntax
Rate(nper, pmt, pv, [ fv, [ type, [ guess ]]])
The Rate function has these named arguments:
Part
Description
nperRequired. Double specifying total number of payment periods in the annuity. For example, if you make monthly payments on a four-year car loan, your loan has a total of 4 * 12 (or 48) payment periods.
pmtRequired. Double specifying payment to be made each period. Payments usually contain principal and interest that doesn't change over the life of the annuity.
pvRequired. Double specifying present value, or value today, of a series of future payments or receipts. For example, when you borrow money to buy a car, the loan amount is the present value to the lender of the monthly car payments you'll make.
fvOptional. Variant specifying future value or cash balance you want after you make the final payment. For example, the future value of a loan is $0 because that's its value after the final payment. However, if you want to save $50,000 over 18 years for your child's educa
Part
Description
nperRequired. Double specifying total number of payment periods in the annuity. For example, if you make monthly payments on a four-year car loan, your loan has a total of 4 * 12 (or 48) payment periods.
pmtRequired. Double specifying payment to be made each period. Payments usually contain principal and interest that doesn't change over the life of the annuity.
pvRequired. Double specifying present value, or value today, of a series of future payments or receipts. For example, when you borrow money to buy a car, the loan amount is the present value to the lender of the monthly car payments you'll make.
fvOptional. Variant specifying future value or cash balance you want after you make the final payment. For example, the future value of a loan is $0 because that's its value after the final payment. However, if you want to save $50,000 over 18 years for your child's educa
Example
Example
This example uses the Rate function to calculate the interest rate of a loan given the total number of payments (TotPmts), the amount of the loan payment (Payment), the present value or principal of the loan (PVal), the future value of the loan (FVal), a number that indicates whether the payment is due at the beginning or end of the payment period (PayType), and an approximation of the expected interest rate (Guess).
Dim Fmt, FVal, Guess, PVal, Payment, TotPmts, PayType, APR
Const ENDPERIOD = 0, BEGINPERIOD = 1 ' When payments are made.
Fmt = "##0.00" ' Define percentage format.
FVal = 0 ' Usually 0 for a loan.
Guess = .1 ' Guess of 10 percent.
PVal = InputBox("How much did you borrow?")
Payment = InputBox("What's your monthly payment?")
TotPmts = InputBox("How many monthly payments do you have to make?")
PayType = MsgBox("Do you make payments at the end of the month?", _
vbYesNo)
If PayType = vbNo Then PayType = BEGINPERIOD Else PayType = ENDPERIOD
APR = (Rate(TotPmts, -Payment, PVal, FVal, PayType, Guess) * 12) * 100
MsgBox "Your interest rate is " & Format(CInt(APR), Fmt) & " percent."
This example uses the Rate function to calculate the interest rate of a loan given the total number of payments (TotPmts), the amount of the loan payment (Payment), the present value or principal of the loan (PVal), the future value of the loan (FVal), a number that indicates whether the payment is due at the beginning or end of the payment period (PayType), and an approximation of the expected interest rate (Guess).
Dim Fmt, FVal, Guess, PVal, Payment, TotPmts, PayType, APR
Const ENDPERIOD = 0, BEGINPERIOD = 1 ' When payments are made.
Fmt = "##0.00" ' Define percentage format.
FVal = 0 ' Usually 0 for a loan.
Guess = .1 ' Guess of 10 percent.
PVal = InputBox("How much did you borrow?")
Payment = InputBox("What's your monthly payment?")
TotPmts = InputBox("How many monthly payments do you have to make?")
PayType = MsgBox("Do you make payments at the end of the month?", _
vbYesNo)
If PayType = vbNo Then PayType = BEGINPERIOD Else PayType = ENDPERIOD
APR = (Rate(TotPmts, -Payment, PVal, FVal, PayType, Guess) * 12) * 100
MsgBox "Your interest rate is " & Format(CInt(APR), Fmt) & " percent."