# MS Excel: RATE Function (WS, VBA)

This Excel tutorial explains how to use the Excel RATE function with syntax and examples.

## Description

The Microsoft Excel RATE function returns the interest rate for an annuity.

## Syntax

The syntax for the Microsoft Excel RATE function is:

`RATE( number_payments, payment, PV, [FV], [Type], [Estimate] )`

### Parameters or Arguments

number_payments is the number of payments for the annuity.

payment is the amount of the payment made each period.

PV is the present value.

FV is optional. It is the future value. If this parameter is omitted, the RATE function assumes a FV value of 0.

Type is optional. It indicates when the payments are due. Type can be one of the following values:

Value Explanation
0 Payments are due at the end of the period. (default)
1 Payments are due at the beginning of the period.

If the Type parameter is omitted, the RATE function assumes a Type value of 0.

Estimate is optional. It is your guess at what the rate will be. If this parameter is omitted, the RATE function assumes an Estimate of 10%.

## Applies To

The RATE function can be used in the following versions of Microsoft Excel:

• Excel 2013, Excel 2011 for Mac, Excel 2010, Excel 2007, Excel 2003, Excel XP, Excel 2000

## Type of Excel Function

The RATE function can be used in Microsoft Excel as the following type of function:

• Worksheet function (WS)
• VBA function (VBA)

## Example (as Worksheet Function)

Let's look at an example to how you would use the RATE examples and explore how to use the RATE function as a worksheet function in Microsoft Excel:

This first example returns the interest rate on a \$5,000 loan where monthly payments of \$250 are made for 2 years. All payments are made at the end of the period.

`=RATE(2*12, -250, 5000)`

This next example returns the interest rate on a \$5,000 loan where monthly payments of \$250 are made for 2 years. All payments are made at the beginning of the period.

`=RATE(2*12, -250, 5000, , 1)`

This next example returns the interest rate on a \$8,000 loan where weekly payments of \$700 are made for 4 years. All payments are made at the end of the period.

`=RATE(4*52, -700, 8000, , 0)`

This final example returns the interest rate on a \$6,500 loan where annual payments of \$1,000 are made for 10 years. All payments are made at the end of the period.

`=RATE(10*1, -1000, 6500)`

## Example (as VBA Function)

The RATE function can also be used in VBA code in Microsoft Excel.

Let's look at some Excel RATE function examples and explore how to use the RATE function in Excel VBA code:

```Dim LValue As Double

LValue = Rate(10*1, -1000, 6500)```

In this example, the variable called LValue would now contain the value of 0.087113756.

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