Function Reference > Functions > RATE

# RATE

Returns the interest rate earned for each period by a security.

### Syntax

RATE( terms, payment, present value[, future value, type] )
Argument
Required/
Optional
Description
terms
Required
Numeric. Number of periods or payments. Must be greater than 0.
payment
Required
Numeric. Payment amount due for each period. Must be a negative number.
present value
Required
Numeric. Lump-sum amount that a series of future payments is worth now.
future value
Optional
Numeric. Cash balance you want to attain after the last payment. For example, the future value of a loan is 0. If you omit this argument, RATE uses 0.
type
Optional
Boolean. Timing of the payment. Enter 1 if payment is at the beginning of period. Enter 0 if payment is at the end of period. Default is 0. If you enter a value other than 0 or 1, Data Integration treats the value as 1.

Numeric.

### Example

The following expression returns 0.0077 as the monthly interest rate of a loan:
RATE( 48, -500, 20000 )
To calculate the annual interest rate of the loan, multiply 0.0077 by 12. The annual interest rate is 0.0924 or 9.24%.