INTRATE Function in Google Sheets

Calculate the interest rate of a fully invested security using the INTRATE function.

INTRATE Function

The INTRATE function in Google Sheets calculates the interest rate of a fully invested security, such as a Treasury bill, based on purchase and sale prices and dates.

Syntax

INTRATE(buy_date, sell_date, buy_price, sell_price, [day_count_convention])
  • buy_date: The purchase date of the security. This is a required parameter.
  • sell_date: The sale or maturity date of the security. This is a required parameter.
  • buy_price: The purchase price of the security. This is a required parameter.
  • sell_price: The sale or redemption price of the security. This is a required parameter.
  • day_count_convention: (Optional) The day count convention to use. Default is 0 (30/360 convention).

Examples

  1. Calculate Interest Rate

Calculate the interest rate for a security purchased on January 1, 2024, sold on January 1, 2025, with a purchase price of $95 and a sale price of $100:

=INTRATE(DATE(2024,1,1), DATE(2025,1,1), 95, 100)

This will output 5.2632%.

Notes

  • The INTRATE function is useful for evaluating the return on short-term securities.
  • The day_count_convention parameter can significantly affect the output depending on the chosen convention.
  • YIELD: Calculate the yield of a security.
  • DISC: Calculate the discount rate of a security.