This article is all about the **RRI** function of Excel. We have already seen how to use the **PV**, **FV**, and **PDURATION** functions in a **previous tutorial**. We have also seen how to calculate **NPV and XNPV** and the difference between the two, in another tutorial.

Now, we will look at how to calculate the equivalent interest rate for the growth of an investment. Put more simply, if we are given a present value, a future value, and the number of periods for an investment, we can calculate the rate of return for those periods using the **RRI** function. The **RRI** Function was introduced in **Excel 2013** and allows one to calculate this compounding interest rate for an investment.

**Table of Contents**hide

## Download Practice Workbook

Download this practice workbook for practice while you are reading this article.

**RRI Function.xlsx**

## What Is RRI in Excel?

**RRI** is a built-in function of **Microsoft Excel**. This function returns us an equivalent interest rate for the growth of an investment over a certain period. Using this function, we can calculate the investment growth rate for that specific time.

## Overview of RRI Function

A brief overview of the **RRI** function is given as follows:

**⏺ Function Objective:**

The main objective of the **RRI** function is to estimate an equivalent interest rate for the growth of an investment.

**⏺ Syntax:**

`=RRI(nper,pv,fv)`

**⏺ Arguments Explanation:**

Argument | Required/Optional | Explanation |
---|---|---|

nper |
Required | nper means the total number of periods. |

pv |
Required | pv stands for the present value or our current invested amount. |

fv |
Required | fv is the future value. The amount of money or interest we get after a certain period of time. |

**⏺ Return:**

The function returns the growth of increase or decrease rate on the amount.

**⏺ Availablity: **

Excel for Office 365, Excel 2019, Excel 2016, Excel 2013, Excel 2011 for Mac, Excel 2010, Excel 2007, Excel 2003, Excel XP, and Excel 2000.

## How to Use RRI Function in Excel

Now, we will demonstrate to you how to use the **RRI** function with a simple example. We have the number of periods in cell **C5** which is **48**. Moreover, our current invested amount or **present value** is in cell **C6**, which is **$1,000**. Our estimated **future value** is **$3.000** and the value is in cell **C7**.

The procedure for using the **RRI** function is given below:

**📌 Steps:**

- First of all, select cell
**C8**. - Now, write down
**=RRI**and press**Tab**. The required value names will be shown.

- Now, to insert the
**nper**value, select cell**C5**. - Then, press
**‘Comma (,)’**.

- After that, to input the
**pv**value, select cell**C6**. - Similarly, press
**‘Comma (,)’**.

- At last, for inputting the
**fv**value, select cell**C7**. - Now, enter your closing bracket to close the parentheses.

- The final expression of the formula will be:

`=RRI(C5,C6,C7)`

- Finally, press
**Enter**. - You will get the RRI value in cell
**C8**.

Thus, we can say that we are able to use the **RRI** function properly.

## 5 Suitable Examples of RRI Function in Excel

Here, we are going to show you **5** different types of examples to use the **RRI** function. We will use a similar type of dataset as shown in our earlier example.

**📚 Note:**

All the operations of this article are accomplished by using the **Microsoft Office 365** application.

### 1. Calculating RRI Value for Day Period

In the first example, we are going to estimate the **RRI** value for the daily period. We invested **$1,000** today and after **30** days, we will get **$2,500**.

The steps to calculate the **RRI** value are given below:

**📌 Steps:**

- At first, select cell
**C8**. - Then, write down the following formula into the cell.

`=RRI(C5,C6,C7)`

- Press
**Enter**.

- You will get the
**RRI**value at our desired cell.

Hence, we can say that our formula works perfectly and we are able to use the **RRI** function in Excel.

**Read More: ****How to Use NPER Function in Excel (3 Relevant Examples)**

### 2. Estimating RRI Value for Monthly Period

In this example, we will determine the **RRI** value for the monthly period. We invested **$10,000** today and after **2** years, we will get **$40.000**.

The steps to calculate the **RRI** value are given as follows:

**📌 Steps:**

- First, select cell
**C6**. - Now, write down the following formula into the cell to convert the yearly period into monthly.

`=C5*12`

- Press
**Enter**.

- After that, select cell
**C9**and write down the following formula into the cell.

`=RRI(C6,C7,C8)`

- Similarly, press
**Enter**.

- You will get the
**RRI**value at our desired cell.

Therefore, we can say that our formula works effectively and we are able to use the **RRI** function in Excel.

**Read More: How to Calculate IRR (Internal Rate of Return) in Excel (8 Ways)**

### 3. Determining RRI Value for Quarterly Period

In the following example, we are going to evaluate the **RRI** value for the quarterly period. We have invested **$10,000** today and after **2** years, we will get **$15.000**.

The steps to determine the **RRI** value are shown as follows:

**📌 Steps:**

- Firstly, select cell
**C6**. - After that, write down the following formula into the cell to convert the yearly period into quarterly.

`=C5*4`

- Press
**Enter**.

- Then, select cell
**C9**and write down the following formula into the cell.

`=RRI(C6,C7,C8)`

- Again, press
**Enter**. - You will figure out the
**RRI**value.

So, we can say that our formula works precisely and we are able to use the **RRI** function in Excel.

**Read More: ****XIRR vs IRR in Excel (Differences with Examples)**

### 4. Evaluating RRI Value for Half Yearly Period

Here, we will estimate the **RRI** value for the half-yearly period. We have invested **$10,000** today and after **3** years, we will get **$30.000**.

The steps to evaluate the **RRI** value are shown as follows:

**📌 Steps:**

- First of all, select cell
**C6**. - Next, write down the following formula into the cell to convert the yearly period into half-yearly.

`=C5*2`

- Then, press
**Enter**.

- Now, select cell
**C9**and write down the following formula inside the cell to get the**RRI**value.

`=RRI(C6,C7,C8)`

- Again, press
**Enter**. - You will get the result.

At last, we can say that our formula works properly, and we are able to use the **RRI** function in Excel.

**Read More: ****How to Use MIRR Function in Excel (3 Quick Examples)**

### 5. Calculating RRI Value for Yearly Period

In the final example, we are going to evaluate the **RRI** value yearly. We are investing **$10,000** and after **10** years, we will get **$30,000**.

The steps to calculate the **RRI** value are given below:

**📌 Steps:**

- In the beginning, select cell
**C8**. - Now, write down the following formula into the cell.

`=RRI(C5,C6,C7)`

- Then, press
**Enter**.

- You will get the yearly
**RRI**value at our desired cell.

Finally, we can say that our formula works successfully, and we are able to use the **RRI** function in Excel.

## Conclusion

This article ends here. I hope that this article will be helpful for you and you will be able to use the RRI function in Excel. Please share any further queries or recommendations with us in the comments section below if you have any further questions or recommendations.

Don’t forget to check our website, **ExcelDemy**, for several Excel-related problems and solutions. Keep learning new methods and keep growing!