The Excel RRI function returns an equivalent interest rate for the growth of an investment. You can use RRI to calculate Compound Annual Growth Rate (CAGR) in Excel.
Syntax:= RRI (nper, pv, fv)
The RRI function syntax has the following arguments:
- Nper Required. Nper is the number of periods for the investment.
- Pv Required. Pv is the present value of the investment.
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Fv Required. Fv is the future value of the investment.
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RRI returns the interest rate given nper (the number of periods), pv (present value), and fv (future value), calculated by using the following equation:
Example: Let’s look at some Excel RRI function examples and explore how to use the RRI function as a worksheet function in Microsoft Excel:
Syntax: =RRI(A2,B2,C2)
Result:
Based on the Excel spreadsheet above, the following RRI examples would return:
Syntax: =RRI(A3,B3,C3)
Result: 0.981%
Syntax: =RRI(A4,B4,C4)
Result: 0.423%
Syntax: =RRI(A5,B5,C5)
Result: 1.877%
Syntax: =RRI(A6,B6,C6)
Result: 1.133%
Syntax: =RRI(A7,B7,C7)
Result: 0.381%
Syntax: =RRI(A8,B8,C8)
Result: 6.991%
Note:
- If nper or pv is zero, RRI returns #NUM! error.
- If any of the specified arguments is negative, RRI returns #NUM! error.
- If any of the specified arguments is not recognized as a numeric value, RRI returns #VALUE! Error.
