This post will guide you how to use **Google Sheets ****RATE function** with syntax and examples in google spreadsheet .

Table of Contents

**Description**

The Google Sheets RATE function returns the interest rate per payment period of an annuity.

The RATE function is a build-in function in Google Sheets and it is categorized as a Financial Function.

**Syntax**

The syntax of the RATE function is as below:

`= RATE(number_of_periods, payment_per_period, present_value, [future_value, end_or_beginning, rate_guess])`

Where the RATE function arguments are:

-This is a required argument. The total number of payments periods in an annuity`number_of_periods`

**.**– This is a required argument. The amount of the payment made each period.`payment_per_period`

– This is a required argument. The present value of the payments.`present_value`

– This is an optional argument. The future value or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.`future_value`

– This is an optional argument. The number 0 (zero) or 1 and indicates when payments are due.`end_or_beginning`

Set type equal to |
If payments are due |

0 or omitted | At the end of the period |

1 | At the beginning of the period |

– This is an optional argument. An initial guess at the internal rate of return. if it is omitted, and it will be set as 0.1 or 10%.`Guess`

**Note:**

- Make sure that you are consistent about the units you use for specifying rate and nper. If you make monthly payments on a four-year loan at an annual interest rate of 12 percent, use 12%/12 for rate and 4*12 for
**number_of_periods**. If you make annual payments on the same loan, use 12 percent for rate and 4 for**number_of_periods**.

**Google Sheets RATE Function Examples**

The below examples will show you how to use Google Sheets RATE Function to calculate the interest rate per period of an annuity.

**#1** to get the monthly rate of the loan, using the following formula:

=RATE(B1*12,B2,B3)

See Also: Calculate Interest Rate in Google Sheets