INTRATE Function
Calculates the interest rate for a fully invested security.
Syntax
Parameters
| Parameter | Description | Required |
|---|---|---|
| settlement | Date the security is purchased. | Required |
| maturity | Date the security expires. | Required |
| investment | Amount invested in the security. | Required |
| redemption | Amount received at maturity. | Required |
| basis | Day-count convention (0 = US 30/360, default). | Optional |
Basic Example
Interest rate for a short-term investment
=INTRATE(DATE(2024,1,1), DATE(2024,12,31), 95000, 100000)Investing $95,000 and receiving $100,000 after one year implies a simple annual interest rate of about 5.41%.
Advanced Examples
Example 1: With actual/365 basis
Money market instrumentUse basis 3 for actual/365
=INTRATE(DATE(2024,1,1), DATE(2024,12,31), 95000, 100000, 3)How INTRATE Works
INTRATE calculates the simple interest rate using the formula (redemption - investment) / investment * (days per year / days to maturity). It is used for short-term discount instruments.
Important Notes & Limitations
Settlement must be before maturity.
Investment and redemption are absolute amounts, not per $100.
Basis affects the day count.
Common Errors & Fixes
#NUM! errorInvalid dates or investment/redemption values.Fix: Verify all inputs.
#VALUE! errorDates are not recognized.Fix: Use DATE function or valid date serial numbers.
Download Practice File
INTRATE
intratePractice INTRATE with Real Data
Download a sample CSV file with pre-populated data and practice exercises for the INTRATE function. Works in both Excel and Google Sheets.
File format: CSV (comma-separated values) - opens in Excel, Google Sheets, and all spreadsheet apps