Annuity solve for interest rate

To solve for an annuity interest rate, you can use the RATE function. In the example shown, C9 contains this formula: =RATE(C7,-C6,C4,C5)

April 14, 2025 · 1 min · 54 words · Kelly White

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Explanation

An annuity is a series of equal cash flows, spaced equally in time.

What interest rate is required?

When a percentagenumber formatis applied, the result displays as 6.24%.

Excel formula: Future value of annuity

Note payment is negative because it represents a cash outflow.

The RATE function calculates by iteration.

Excel formula: Future value vs. Present value

Excel formula: Present value of annuity

Excel formula: Payment for annuity

Excel RATE function