Documentation/How Tos/Calc: INTRATE function

INTRATE

Returns the equivalent annual interest rate for an item bought at one price and sold at another.

Syntax:

INTRATE(purchasedate; saledate; purchasevalue; salevalue; basis)

purchasedate: the date the item was bought.

saledate: the date the item was sold.

purchasevalue: the amount paid for the item.

salevalue: the amount received for the item.

basis: is chosen from a list of options and indicates how the year is to be calculated. Defaults to 0 if omitted.

0 - US method (NASD), 12 months of 30 days each

1 - Exact number of days in months, exact number of days in year

2 - Exact number of days in month, year has 360 days

3 - Exact number of days in month, year has 365 days

4 - European method, 12 months of 30 days each

The equivalent interest rate returned is the (un-compounded) interest rate that would have to be paid on an investment of purchasevalue to turn it into salevalue on the date of sale.

The formula used is:

(salevalue - purchasevalue)/purchasevalue * (days_in_a_year/days_item_owned)

As the formula takes no account of compounding, this function is most reliable for periods of less than a year. See Derivation of Financial Formulas for a formula review.

Example:

INTRATE("2009-02-02"; "2009-12-03"; 1000; 1080; 0)

returns approximately 0.096, or 9.6%.

See also:

RECEIVED

Financial date systems

Derivation of Financial Formulas

Financial functions

Issues:

• Calc and Excel do not agree on the number of days in a year in basis 1. It is not clear which is theoretically correct. Calc uses the number of days in the year containing purchasedate.