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RRI Function

Excel 2013+

Summary

The Excel RRI function calculates the equivalent interest rate required for an investment to grow from its present value to a specified future value over a given number of periods. It's a powerful financial tool for reverse-engineering interest rates from investment growth scenarios.

Syntax

RRI(nper, pv, fv)

Parameters

Parameter	Type	Required	Description
nper	`Number`	Yes	Number of periods (time periods) for the investment
pv	`Number`	Yes	Present value (initial investment amount)
fv	`Number`	Yes	Future value (target value after growth)

Using the RRI Function

RRI is invaluable in financial modeling when you know the starting amount, ending amount, and time period but need to determine the implied interest rate. Use it for investment performance analysis, loan rate calculations, and validating growth projections.

Common RRI Examples

Investment Growth Rate

=RRI(96,10000,11000)

Calculates the equivalent interest rate for $10,000 growing to $11,000 over 96 periods (monthly over 8 years). Returns approximately 0.0009933 or 0.09933% per period.

Annual Rate from Monthly Periods

=RRI(12,1000,1100)

Finds monthly rate for investment doubling in value over 1 year, then multiply by 12 for annual rate.

Loan Rate Analysis

=RRI(60,-20000,0)

Determines monthly interest rate for 60-month car loan of $20,000 (negative PV for loan).

Frequently Asked Questions

RRI stands for 'Rate of Return on Investment'. It calculates the equivalent periodic interest rate.

Yes, just use the total number of months as nper. For 5 years monthly, use 60 periods.

RRI returns a negative rate, indicating investment decline or loan repayment scenario.

Common Errors and Solutions

#NUM!

Cause: Invalid argument values (negative periods, pv=fv=0)

Solution: Verify nper > 0 and pv ≠ fv

#VALUE!

Cause: Non-numeric arguments provided

Solution: Ensure all inputs are valid numbers

Notes

RRI solves the compound interest equation: fv = pv*(1+rate)^nper
Use negative pv for loans/outflows, positive for investments/inflows
Result is periodic rate - multiply by periods per year for annual rate
Available in Excel 2013 and later versions

Compatibility

Available in: Excel 2013, Excel 2016, Excel 2019, Excel 2021, Excel 365

Not available in: Excel 2010, Excel 2007, Excel 2003

Content last reviewed: December 9, 2025
Update frequency: As needed
Excel versions tested: Excel 2013+