# How to Use the RRI Function in Excel – 5 Examples

## The RRI Function

Function Objective:

to estimate an equivalent interest rate for the growth of an investment.

Syntax:

`=RRI(nper,pv,fv)`

Arguments:

Argument Required/Optional Explanation
nper Required nper refers to the total number of periods.
pv Required pv is the present value or the invested amount.
fv Required fv is the future value. (the amount of money or interest you get after a period of time)

Output:

the growth of increase or decrease rate.

The sample dataset showcases the number of periods: 48, the current invested amount or present value\$1,000 and the estimated future value: \$3.000.

Steps:

• Select C8.
• Enter =RRI and press Tab.

• To enter the nper value, select C5.
• Enter ‘Comma (,)’.

• Enter the pv value in C6.
• Enter ‘Comma (,)’.

• Enter the fv value in C7.
• Enter a closing bracket.

• The final formula is:

`=RRI(C5,C6,C7)`

• Press Enter.

The RRI value is displayed in C8.

### Example 1 – Calculating RRI Value for Day Period

To calculate the RRI value for the daily period. (\$1,000 was invested and after 30 days you will get \$2,500).

Steps:

• Select C8.
• Enter the following formula:

`=RRI(C5,C6,C7)`

• Press Enter.

This is the output.

### Example 2 – Calculate the RRI Value for a Monthly Period

\$10,000 was invested and after 2 years you will get \$40.000.

Steps:

• Select C6.
• Enter the following formula to convert the yearly period into monthly.

`=C5*12`

• Press Enter.

• Select C9.
• Enter the following formula:

`=RRI(C6,C7,C8)`

• Press Enter.

This is the output.

### Example 3 – Determine the RRI Value for a Quarterly Period

\$10,000 was invested and after 2 years you will get \$15.000.

Steps:

• Select C6.
• Enter the following formula to convert the yearly period into quarterly.

`=C5*4`

• Press Enter.

• Select C9.
• Enter the following formula:

`=RRI(C6,C7,C8)`

• Press Enter.

This is the output.

### Example 4 –  Evaluating RRI Value for Half Yearly Period

\$10,000 was invested and after 3 years you will get \$30.000.

Steps:

• Select C6.
• Enter the following formula to convert the yearly period into half-yearly.

`=C5*2`

• Press Enter.

• Select C9.
• Enter the following formula:

`=RRI(C6,C7,C8)`

• Press Enter.

This is the output.

### Example 5 – Calculating the RRI Value for a Yearly Period

\$10,000 was invested and after 10 years you will get \$30,000.

Steps:

• Select C8.
• Enter the following formula:

`=RRI(C5,C6,C7)`

• Press Enter.

This is the output.

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Taryn Nefdt

Taryn is a Microsoft Certified Professional, who has used Office Applications such as Excel and Access extensively, in her interdisciplinary academic career and work experience. She has a background in biochemistry, Geographical Information Systems (GIS), and biofuels. She enjoys showcasing the functionality of Excel in various disciplines. She has over ten years of experience using Excel and Access to create advanced integrated solutions.

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