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.
Fv Required. Fv is the future value of the investment.
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:
Based on the Excel spreadsheet above, the following RRI examples would return:
- 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.