Rate = (End Value / Start Value)^(1/Periods) - 1 Excel’s RRI function calculates the equivalent interest rate needed for an investment to grow from a present value to a future value over a specified number of periods. Syntax =RRI(Nper, Pv, Fv)
=RRI(Nper, Pv, Fv)
-0.116 → -11.6% per year Comparing RRI to Other Excel Functions | Function | Purpose | | :--- | :--- | | RRI | Find the compound interest rate from start and end values. | | FV | Find the future value given a fixed rate. | | PV | Find the present value given a fixed rate. | | RATE | More flexible version of RRI (handles periodic payments). | rentes rente formel excel
This gives you the average annual (or per-period) compound interest rate, essential for evaluating investments, savings, or loan costs in Danish finance. Rate = (End Value / Start Value)^(1/Periods) -
| Argument | Explanation | | :--- | :--- | | | Number of periods (years, months, quarters, etc.) | | Pv | Present Value (start value) | | Fv | Future Value (end value) | Note: RRI always returns the rate per period . If Nper is in years, the result is the annual compound interest rate. Practical Examples Example 1: Annual Compound Interest You invest 10,000 DKK in a fund. After 5 years , it is worth 15,000 DKK . What was the average annual compound growth rate? | | PV | Find the present value given a fixed rate
End Value = Start Value * (1 + Rate)^Periods
To solve for the (the compound interest rate), the formula is:
