RRI Function
Calculates the equivalent compound interest rate for an investment.
Syntax
Parameters
| Parameter | Description | Required |
|---|---|---|
| nper | Total number of periods. | Required |
| pv | Present value of the investment. | Required |
| fv | Future value of the investment. | Required |
Basic Example
Annual growth rate of an investment
=RRI(5, 10000, 15000)An investment that grew from $10,000 to $15,000 over 5 years had an annual growth rate of about 8.45%.
Advanced Examples
Example 1: CAGR over years
Investment performanceCompound annual growth rate for a stock
=RRI(10, 5000, 12000)How RRI Works
RRI uses the formula (fv / pv)^(1/nper) - 1 to compute the equivalent compound growth rate. It is the inverse of the future-value formula.
Important Notes & Limitations
Requires pv and fv to have the same sign.
Result is the periodic rate, not annual unless periods are years.
Does not account for dividends or additional contributions.
Common Errors & Fixes
#NUM! errorpv is zero or negative, or fv and pv have opposite signs.Fix: Use positive pv and fv, with fv > pv for growth.
Wrong annual ratenper is in months but result was interpreted as annual.Fix: Use annual periods for annual CAGR, or multiply the monthly rate by 12.
Download Practice File
RRI
rriPractice RRI with Real Data
Download a sample CSV file with pre-populated data and practice exercises for the RRI function. Works in both Excel and Google Sheets.
File format: CSV (comma-separated values) - opens in Excel, Google Sheets, and all spreadsheet apps