__See Also__ __Example__

**Description**

Returns the interest rate per period for an annuity.

**Syntax**

**Rate(***nper***,** *pmt***,** *pv***,** *fv***,** *due***,** *guess***)**

**Remarks**

An annuity is a series of constant cash payments made over a period of time. An annuity can be a loan (such as a home mortgage) or an investment (such as a monthly savings plan).

The **Rate** function uses the following numeric arguments:

**Argument Description**

*nper* Total number of payment periods in the annuity. For example, if you make monthly payments on a four-year car loan, your loan has a total of 4 * 12 (or 48) payment periods.

*pmt* Payment to be made each period. Payments usually contain principal and interest that doesn't change over the life of the annuity.

*pv* Present value, or value today, of a series of future payments or receipts. For example, when you borrow money to buy a car, the loan amount is the present value to the lender of the monthly car payments you will make.

*fv* Future value or cash balance you want after you've made the final payment. The future value of a loan, for instance, is $0. As another example, if you will need $50,000 in 18 years to pay for your child's education, then $50,000 is the future value.

*due* Number indicating when payments are due. Use 0 if payments are due at the end of the payment period, and use 1 if payments are due at the beginning of the period.

*guess* Value you guess will be returned by **Rate**. In most cases, *guess* is 0.1 (10 percent).

For all arguments, cash paid out (such as deposits to savings) is represented by negative numbers; cash received (such as dividend checks) is represented by positive numbers.

**Rate** is calculated by iteration. Starting with the value of *guess*, **Rate** cycles through the calculation until the result is accurate to within 0.00001 percent. If, after 20 tries, it can't find a result, **Rate** fails. If your guess is 10 percent and **Rate** fails, try a different value for *guess*.

**Distribution Note** When you create and distribute applications that use any of the financial functions, you should install the file MSAFINX.DLL in the customer's Microsoft Windows \SYSTEM directory. The Visual Basic __Setup Kit__ provides tools to help you write setup programs that install your applications.