-0.116 → -11.6% per year Comparing RRI to Other Excel Functions | Function | Purpose | | :--- | :--- | | RRI | Find the compound interest rate from start and end values. | | FV | Find the future value given a fixed rate. | | PV | Find the present value given a fixed rate. | | RATE | More flexible version of RRI (handles periodic payments). |
Use RRI when you only have a single initial amount, a final amount, and time. Use RATE for loans or investments with regular payments. | Error | Likely Cause | Fix | | :--- | :--- | :--- | | #NUM! | Negative or zero present/future value | Check that Pv and Fv are positive numbers. | | #VALUE! | Non-numeric arguments | Ensure all inputs are numbers, not text. | | Unexpected decimal | Wrong period units | Match Nper units to the desired rate (e.g., use months for monthly rate). | Summary The RRI function in Excel is the quickest way to apply the rentes rente formel . Instead of typing =(Fv/Pv)^(1/Nper)-1 , simply use:
0.0845 → 8.45% per year Example 2: Monthly Growth (Convert to Annual) Your savings account grows from 5,000 DKK to 5,500 DKK over 6 months . What is the monthly compound interest rate?
In Danish finance, "rentes rente" (compound interest) is the principle where interest earned on an investment is reinvested, so you earn interest on your interest. The formal formula for calculating the average annual growth rate is known as the "rentes rente formel" .
In Excel, you don't need to memorize the complex mathematical equation. Microsoft provides a dedicated function: . The Mathematical Formula For reference, the classic compound interest formula is:
| Argument | Explanation | | :--- | :--- | | | Number of periods (years, months, quarters, etc.) | | Pv | Present Value (start value) | | Fv | Future Value (end value) | Note: RRI always returns the rate per period . If Nper is in years, the result is the annual compound interest rate. Practical Examples Example 1: Annual Compound Interest You invest 10,000 DKK in a fund. After 5 years , it is worth 15,000 DKK . What was the average annual compound growth rate?
This gives you the average annual (or per-period) compound interest rate, essential for evaluating investments, savings, or loan costs in Danish finance.
=RRI(Nper, Pv, Fv)
