What is the syntax for RRI in Excel?

The syntax for RRI is: =RRI(nper, pv, fv)

What is RRI used for?

RRI calculates the equivalent compound growth rate for an investment. It's essentially CAGR (Compound Annual Growth Rate). Given starting value, ending value, and time period, it returns the constant rate that would produce that growth.

How do I calculate CAGR with RRI?

Use =RRI(years, starting_value, ending_value). Investment grew from $10,000 to $15,000 over 5 years: =RRI(5, 10000, 15000) = 8.45% CAGR. This is the constant annual rate that would produce the same result.

How is RRI different from simple return calculation?

Simple return: (15000-10000)/10000 = 50% total. RRI gives compound annual rate: 8.45%/year. RRI accounts for compounding - 8.45% compounded 5 times equals 50% total. Use RRI for annualized performance comparison.

Financial

RRI Function in Excel

Returns an equivalent interest rate for the growth of an investment.

Syntax

=RRI(nper, pv, fv)

Arguments

nper (required): Number of periods
pv (required): Present value
fv (required): Future value

Examples

=RRI(96, 10000, 11000) - Equivalent rate - Result: 0.001

RRI modeling tips

Align rate and period units (annual rate ÷ 12 for monthly models).
Use consistent cash-flow signs (outflows negative, inflows positive).
Hub: [Financial functions guide](/guides/excel-financial-functions-guide/).

Common errors

#NUM! if nper <= 0

Use cases

Growth rate calculation
Investment returns
CAGR

Frequently asked questions

What is RRI used for? RRI calculates the equivalent compound growth rate for an investment. It's essentially CAGR (Compound Annual Growth Rate). Given starting value, ending value, and time period, it returns the constant rate that would produce that growth.
How do I calculate CAGR with RRI? Use =RRI(years, starting_value, ending_value). Investment grew from $10,000 to $15,000 over 5 years: =RRI(5, 10000, 15000) = 8.45% CAGR. This is the constant annual rate that would produce the same result.
How is RRI different from simple return calculation? Simple return: (15000-10000)/10000 = 50% total. RRI gives compound annual rate: 8.45%/year. RRI accounts for compounding - 8.45% compounded 5 times equals 50% total. Use RRI for annualized performance comparison.

Editorial review

Reviewed by Excel.Directory Editorial Team. Updated May 2026.