In Excel, you use the PMT function to calculate the periodic payment for a standard amortizing loan. It has the Returns the interest rate per period of an annuity. Example 2: Calculate the Payment on a amount is $100,000; The interest rate is 5% What's compound interest and what's the formula for compound interest in Excel? be worth after one year at an annual interest rate of 8%? The answer is $108. So we can also directly calculate the value of the investment after 5 years. Calculate the future value of an investment. NPER, Calculates the number of periods to reach an investment goal. Learn more about interest rates here.

## A function which is used to calculate the interest rate for paying the specified amount of a loan or to get the specified amount of an investment after some period

Using the function PMT(rate,NPER,PV) =PMT(17%/12,2*12,5400) the result is a monthly payment of $266.99 to pay the debt off in two years. The rate argument is the interest rate per period for the loan. For example, in this formula the 17% annual interest rate is divided by 12, the number of months in a year. To calculate simple interest in Excel (i.e. interest that is not compounded), you can use a formula that multiples principal, rate, and term. This example assumes that $1000 is invested for 10 years at an annual interest rate of 5%. Use the RATE Function to calculate the interest rate of an investment. For PMT, cash out-flows are negative. Cash In-flows are positive. The result of the RATE Function may appear as a decimal. Change the cell Number Formatting to Percentage to display the function result as a percentage: The Excel RATE function is a financial function that returns the interest rate per period of an annuity. You can use RATE to calculate the periodic interest rate, then multiply as required to derive the annual interest rate. The RATE function In these scenarios, Excel has the most important function “RATE” which is the part of a financial function. What is RATE Function? A function which is used to calculate the interest rate for paying the specified amount of a loan or to get the specified amount of an investment after some period of time is called RATE function. There is a formula in Excel which calculates simple interest by multiplying the principal, the rate, and the term. Calculate simple interest in Excel. Consider the example demonstrated below in which the formula in C5 is =C2*C3*C4. In order to do a simple interest calculation in Excel using the COUNTA function, follow the procedure below:

### The RATE function is categorized under Excel Financial functions. The function will calculate the interest rate charged on a loan or the rate of return needed to reach a specified amount on an investment over a given period.

A function which is used to calculate the interest rate for paying the specified amount of a loan or to get the specified amount of an investment after some period A tutorial about using the Microsoft Excel financial functions to solve time value of money (PV, FV, solve for interest rate and number of periods) problems Among Excel's more popular formulas, the EFFECT formula is often used by financial professionals to figure out an effective interest rate from a nominal interest Excel lets a person find monthly instalment on a loan amount using the function having principle amount or loan amount, interest rate per month and the period 1 Apr 2019 Here the stated 8% interest is the nominal interest rate. To calculate the maturity value of an investment, you can use the following formula:. In Excel, you use the PMT function to calculate the periodic payment for a standard amortizing loan. It has the Returns the interest rate per period of an annuity. Example 2: Calculate the Payment on a amount is $100,000; The interest rate is 5%