Find Rate
With the Find Rate calculation you can calculate the nominal and effective annual rate for single and periodic payments.
You can use this calculation to find the rate that would be required for an investment to grow to a given future value or to check what nominal and effective rate is used when you make periodic payments to pay off a loan.
The Find Rate calculation internally calculates to 9 digits after the decimal point. This result is then rounded using the Percentages rounding set in the Rounding pane of the Preferences window.
Note: When results can't be calculated a question mark will be displayed. This will be the case when a negative interest rate would be required or when the rate for periodic payments would exceed 1,000 %.
Input
| • payment type: single | |
| • compounding frequency | |
| • periods | |
| • number of years or number of periods | |
• present value |
|
| • future value | |
| • payment type: periodic | |
| • compounding frequency | |
| • payment frequency | |
| • number of years or number of payments | |
• present or future value |
|
| • periodic payment |
Results
| • nominal annual rate |
| • effective annual rate |
Examples
| • | At what nominal rate compounded monthly will an investment double in 5 years?
Answer: 13.59 %. |
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| • | What would be the nominal rate compounded semiannually at which monthly deposits of $75 will accumulate to $5,000 in 5 years?
Answer: 4.26 %. |
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| • | A $300 debt has to be paid back in $30 monthly installments for a year. What is the rate compounded monthly and the effective annual rate being charged?
Answer: The nominal annual rate compounded monthly is 35.07 % and the effective annual rate is 41.30 %. |
Related topics
| Nominal annual rate |
| Single Payment |
| Periodic Payments |