Excel Formulas to Calculate Annuity Solve for Interest Rate ~ Quickly!!
Tags: excelformula, excelformulas
Published: 2021-06-28 02:57:33

---
title: Excel Formulas to Calculate Annuity Solve for Interest Rate ~ Quickly!!
published: true
date: 2021-06-19 14:55:04 UTC
tags: ExcelFormula,Excelformulas
canonical_url: https://geekexcel.com/excel-formulas-calculate-annuity-solve-for-interest-rate/
---

For anyone working in finance or banking, then this article is for you. Excel can be an extremely useful tool for these calculations. In this chapter, we will discuss the **formulas to calculate an annuity interest rate in Excel**. Let’s jump into this article!! 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)

[!["<yoastmark](https://geekexcel.com/wp-content/uploads/2021/06/Calculate-annuity-solve-for-interest-rate.png)](https://geekexcel.com/excel-formulas-calculate-annuity-solve-for-interest-rate/calculate-annuity-solve-for-interest-rate/#main)

## General Formula:

- You can use the below formulas to calculate an annuity interest rate in Excel.

**=[RATE](https://geekexcel.com/how-to-use-excel-rate-function-in-office-365-with-examples/)(nper,pmt,pv,fv)**

## Syntax Explanations:

- **RATE** – In Excel, the [**RATE function**](https://geekexcel.com/how-to-use-excel-rate-function-in-office-365-with-examples/) returns the interest rate evaluated by iteration. It computes the interest rate per period of an annuity and can have zero or more solutions.
- **Nper** – It is the total number of payment periods (months, quarters, years, etc.) in an annuity.
- **Pmt (Required) **– It is the payment made every period.
- **Pv (Required)** – The present value of all future payments.
- **Fv (Optional)** – The future value after the last payment. It is also referred to as the desired cash balance and its default value is 0.
- **Comma symbol (,)** – It is a separator that helps to separate a list of values.
- **Parenthesis ()** – The main purpose of this symbol is to group the elements.

## Example:

Let’s consider the below example image.

- Here, we will enter the input values in **Column B** and **Column C**.
- Now we need to calculate an annuity interest rate.

![Input Ranges](https://geekexcel.com/wp-content/uploads/2021/06/Input-Ranges-47.png)<figcaption id="caption-attachment-47667">Input Ranges</figcaption>

- Select any cell and type the above-given formula.

![Enter the formula](https://geekexcel.com/wp-content/uploads/2021/06/Enter-the-formula-61.png)<figcaption id="caption-attachment-47666">Enter the formula</figcaption>

- Finally, press the ** ENTER**  key, you can get the result as shown below.

![Result](https://geekexcel.com/wp-content/uploads/2021/06/Result1-10.png)<figcaption id="caption-attachment-47668">Result</figcaption>

## Bottom-Line:

Hope you like this article on **how to calculate an annuity interest rate in Excel**. Let me know if you have any **doubts** regarding this article or any other article on this site.

Thank you so much for visiting  **[Geek Excel](https://geekexcel.com/)!! **If you want to learn more helpful formulas, check out [**Excel Formulas**](https://geekexcel.com/excel-formula/) **!! **

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