RRIfunction calculates the interest rate per period of an investment based on the number of periods, present value, and future value. It is commonly used to determine the rate of return on an investment.
- How to use
- Examples of using
RRIformula not working?
- Similar formulas to
RRI formula with the syntax shown below, it has 3 required parameters:
- number_of_periods (required):
The total number of investment periods.
- present_value (required):
The present value of the investment.
- future_value (required):
The future value of the investment.
ExamplesHere are a few example use cases that explain how to use the
RRIformula in Google Sheets.
Calculating rate of return
RRI to calculate the rate of return on an investment based on the present and future values.
RRI to compare the rates of return on different investments with different present and future values.
RRInot working? Here are some common mistakes people make when using the
RRIGoogle Sheets Formula:
Not providing all three arguments
The RRI function requires three arguments: the number of periods, the present value, and the future value. Leaving out any of these arguments will result in an error.
Providing non-numeric arguments
All arguments for the RRI function must be numeric. Providing non-numeric arguments will result in an error. Make sure that all arguments are numbers or refer to cells that contain numbers.
Present value is greater than future value
The present value argument must be less than the future value argument for the RRI function to return a valid result. If the present value is greater than the future value, the function will return an error.
The following functions are similar to
RRI or are often used with it in a formula:
PVfunction in Google Sheets calculates the present value of a regular payment stream or a lump sum amount, based on a constant interest rate. It is commonly used in financial analysis to determine the value of investments or loans. This function returns a negative value, as it represents money flowing out from the user.
FVfunction calculates the future value of an investment based on periodic constant payments and a constant interest rate. It takes into account the present value of the investment, the number of periods in which the payments are made, and the compounding frequency. This formula is commonly used in financial planning and investment analysis.
NPVfunction calculates the net present value of a series of cash flows, discounted by a specified rate. It is commonly used to determine the present value of an investment, where the cash flows represent incoming and outgoing payments. The function takes a discount rate and one or more cash flow values as input.
You can learn more about the
RRI Google Sheets function on Google Support.