How to use the DURATION Function in Excel office 365?
Tags: tousethedurationfunc, excel, excelfunctions
Published: 2021-09-03 03:24:00

---
title: How to use the DURATION Function in Excel office 365?
published: true
date: 2021-09-03 01:33:20 UTC
tags: ToUseTheDURATIONFunc,Excel,ExcelFunctions
canonical_url: https://geekexcel.com/how-to-use-the-duration-function-in-excel-office-365/
---

In this tutorial, we will guide you on **how to use the DURATION**  **Function In Excel Office 365**. Let’s get them below!! Get an official version of MS Excel from the following link: **[https://www.microsoft.com/en-in/microsoft-365/excel](https://www.microsoft.com/en-in/microsoft-365/excel)**

## DURATION Function

- The **DURATION function** is a **built-in financial function** which returns the **Macauley duration per $100 face value**  **of a security** that pays periodic interest.
- It is also similar to the **[MDURATION Function](https://geekexcel.com/how-to-use-the-mduration-function-in-excel-office-365/)**.

## DURATION Function Syntax

```
=DURATION(settlement, maturity, rate, yld, redemption, frequency, [basis])
```

**Syntax Explanation:**

- **Settlement:** Settlement date of the security
- **Maturity:** Maturity date of the security. The maturity date is the date when the security expires.
- **Rate:** The security’s annual coupon rate
- **Yld:** The security’s annual yield
- **Frequency:** Coupon payments per year (annual = 1, semiannual = 2; quarterly = 4.
- **basis:** [optional] Day count basis.

## Example1

- Firstly, you need to create **sample data with input values**.

![](https://geekexcel.com/wp-content/uploads/2021/09/Sample-data-4.png)<figcaption>Sample data</figcaption>

- Then, you have to calculate the **Macauley DURATION** per $100 face value of a security that pays periodic interest.
- Now, you need to use the following **formula** given below.

```
=DURATION( B1 , B2 , B3 , B4 , B5 , 0 )
```

**B1:** Settlement date of the security  
**B2:** Maturity date of the security. The maturity date is the date when the security expires.  
**B3:** The security’s annual coupon rate  
**B4:** The security’s annual yield  
**B5:** Coupon payments per year (semiannual = 2).  
**0:** [optional] Day count basis.

![](https://geekexcel.com/wp-content/uploads/2021/09/DURATION-Function.png)<figcaption>DURATION Function</figcaption>

**NOTE:** Dates in the formula must be entered using cell reference or DATE function. Excel date format creates #VALUE! error while computing results. Use the cell reference or DATE function in Excel while taking the date as input to the function. Now Press Enter to get the DURATION.

- After that, the formula returns the **DURATION per $100 face value** of a security that pays periodic interest.

## Example2

- Firstly, you need to create **sample data with input values**.

![](https://geekexcel.com/wp-content/uploads/2021/09/Ex-2-Sample-data-5.png)<figcaption>Sample data</figcaption>

- Then, you have to calculate the **Macauley DURATION** per $100 face value of a security that pays periodic interest.
- Now, you need to use the following **formula** given below.

```
=DURATION( B1 , B2 , B3 , B4 , B5 , 0 )
```

**B1:** Settlement date of the security  
**B2:** Maturity date of the security. The maturity date is the date when the security expires.  
**B3:** The security’s annual coupon rate  
**B4:** The security’s annual yield  
**B5:** Coupon payments per year (semiannual = 2).  
**0:** [optional] Day count basis.

![](https://geekexcel.com/wp-content/uploads/2021/09/Ex-2-DURATION-Function.png)<figcaption>DURATION Function</figcaption>

**NOTE:** Dates in the formula must be entered using cell reference or DATE function. Excel date format creates #VALUE! error while computing results. Use the cell reference or DATE function in Excel while taking the date as input to the function. Now Press Enter to get the DURATION.

- After that, the formula returns the **DURATION per $100 face value** of a security that pays periodic interest.

## Wrap-Up

Hope you understood how to **use the DURATION**  **Function In Excel Office 365**. Please feel free to state your query or feedback for the above article. Thank you so much for Reading!! To learn more, check out **[Geek Excel](https://geekexcel.com/)!! **and [**Excel Formulas**](https://geekexcel.com/excel-formula/) **!!**

**Read Ahead:**

- **[Excel Formulas to Calculate the Time Duration With Number of Days!!](https://geekexcel.com/excel-formulas-to-calculate-the-time-duration-with-number-of-days/)**
- **[How to use the RECEIVED Function in Excel office 365?](https://geekexcel.com/how-to-use-the-received-function-in-excel-office-365/)**
- **[Excel Formulas to Calculate the Annual Compound Interest Schedule!!](https://geekexcel.com/excel-formulas-calculate-annual-compound-interest-schedule/)**
- **[How to make Gantt charts by weeks in Excel 365?](https://geekexcel.com/how-to-make-gantt-charts-by-weeks-in-excel-365/)**
- **[How to use the MDURATION function in Excel office 365?](https://geekexcel.com/how-to-use-the-mduration-function-in-excel-office-365/)**