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RATE
RATE iteratively solves for the interest rate per period that satisfies a loan or annuity with fixed payments. It is commonly used to find the implied interest rate on a loan when you know the term, the regular payment, and the loan amount.
Excel
=RATE(B2,B3,B4)Google Sheets
=RATE(B2,B3,B4)✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Parameter | Value |
| Nper | 36 |
| Pmt | -300 |
| PV | 9000 |
| FV | 0 |
=RATE(B2,B3,B4)→0.010207449
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How it works
- 1Identify nper (total number of payment periods), pmt (payment per period, negative for outflows), and pv (present value / loan amount, positive).
- 2Enter =RATE(nper, pmt, pv) to get the rate per period.
- 3Multiply by 12 (or the periods per year) to annualise: =RATE(nper,pmt,pv)*12.
Need a version for your data?
Try: “What monthly interest rate am I paying on a 36-month loan with $300 monthly payments on a $9,000 balance?”