RRI Function in Google Sheets

Calculate the equivalent annual interest rate of an investment based on its growth over a period of time.

RRI Function

The RRI function in Google Sheets calculates the equivalent annual interest rate of an investment based on its growth over a specified number of periods.

Syntax

RRI(number_of_periods, present_value, future_value)
  • number_of_periods: The number of periods over which the investment grows.
  • present_value: The initial value of the investment.
  • future_value: The value of the investment at the end of the period.

Examples

  1. Basic Rate of Return Calculation

Calculate the annual rate of return for an investment that grows from $1000 to $1500 over 5 years:

=RRI(5, 1000, 1500)

This will output 0.084 or 8.4%.

Notes

  • Useful for comparing investment returns over different periods.
  • The result is an annual interest rate.
  • RATE: Calculate the interest rate per period of an annuity.
  • FV: Calculate the future value of an investment based on periodic, constant payments.