RATE Function in Excel: The Interest Rate Hidden in a Loan

⏱ 1 min readUpdated 28 September 2026

FinancialLevel: ExpertAvailable in: Excel 2007+

In this article
  1. Syntax
  2. Examples
  3. Example 1
  4. Related functions

RATE works out the interest rate from the loan amount, EMI and term — useful for checking “0% EMI” and flat-rate offers.

Syntax

=RATE(nper, pmt, pv, [fv], [type], [guess])
Argument What it means
nper Number of payments.
pmt EMI (negative).
pv Amount borrowed.

Examples

Example 1

=RATE(12, -9000, 100000)*12

Real annual rate when ₹1 lakh is repaid as 12 EMIs of ₹9,000 — about 14.4%, not the 8% it may look like.

PMT · NPER · EFFECT

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