In this comprehensive guide, we will explore everything you need to know about the INTRATE function in Excel. The INTRATE function is a financial function that calculates the interest rate for a fully invested security. It is particularly useful for investors and financial analysts who need to determine the interest rate of an investment based on its settlement date, maturity date, and other relevant information.


The syntax for the INTRATE function in Excel is as follows:

=INTRATE(settlement, maturity, investment, redemption, [basis])

Where the function arguments are:

  • settlement – The security’s settlement date, which is the date after the issuance when the security is delivered to the buyer.
  • maturity – The security’s maturity date, which is the date when the security expires and the principal amount is paid to the holder.
  • investment – The amount invested in the security.
  • redemption – The amount to be received at maturity.
  • [basis] – (Optional) The day count basis to be used. If omitted, the default value is 0, which represents the US (NASD) 30/360 day count basis. Other available options are:
  • 0 or omitted – US (NASD) 30/360
  • 1 – Actual/actual
  • 2 – Actual/360
  • 3 – Actual/365
  • 4 – European 30/360

INTRATE Examples

Let’s look at some examples of how to use the INTRATE function in Excel.

Example 1: Basic INTRATE Calculation

Suppose you have invested $10,000 in a security with a settlement date of January 1, 2021, and a maturity date of January 1, 2022. The redemption amount is $10,500. To calculate the interest rate, you can use the following formula:

=INTRATE(“2021-01-01”, “2022-01-01”, 10000, 10500)

This formula will return the interest rate as a decimal value. To display it as a percentage, you can format the cell containing the formula as a percentage.

Example 2: INTRATE Calculation with Different Day Count Basis

Using the same investment details as in Example 1, let’s calculate the interest rate using the Actual/365 day count basis. The formula will be:

=INTRATE(“2021-01-01”, “2022-01-01”, 10000, 10500, 3)

INTRATE Tips & Tricks

  • Remember to format the cell containing the INTRATE formula as a percentage to display the interest rate as a percentage value.
  • Ensure that the settlement and maturity dates are entered in a recognized date format in Excel.
  • When comparing investments with different day count bases, make sure to use the same basis for all calculations to ensure accurate comparisons.

Common Mistakes When Using INTRATE

  • Entering the settlement and maturity dates in an incorrect format. Excel may not recognize the dates, resulting in an error or incorrect calculation.
  • Using an invalid value for the [basis] argument. Ensure that the value is between 0 and 4, as described in the syntax section.
  • Forgetting to format the cell as a percentage, which may cause the interest rate to be displayed as a decimal value.

Why Isn’t My INTRATE Working?

If your INTRATE function is not working, consider the following troubleshooting steps:

  • Check the settlement and maturity dates to ensure they are in a recognized date format.
  • Verify that the investment and redemption amounts are entered as numerical values.
  • Ensure that the [basis] argument, if used, is a valid value between 0 and 4.
  • Make sure that the settlement date is earlier than the maturity date.

INTRATE: Related Formulae

Here are some related financial functions in Excel that you may find useful:

  • DISC – Calculates the discount rate for a security.
  • EFFECT – Calculates the effective annual interest rate based on the nominal annual interest rate and the number of compounding periods per year.
  • NOMINAL – Calculates the nominal annual interest rate based on the effective annual interest rate and the number of compounding periods per year.
  • YIELD – Calculates the yield on a security that pays periodic interest.
  • YIELDDISC – Calculates the annual yield for a discounted security, such as a Treasury bill.

By understanding and mastering the INTRATE function in Excel, you can effectively analyze and compare various investment opportunities based on their interest rates. This knowledge will help you make informed decisions when it comes to managing your investments and maximizing your returns.


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