How to calculate APR in Excel?

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How to calculate APR in Excel?

To calculate the Annual Percentage Rate (APR) in Excel, use the RATE function combined with multiplication. Assuming you have the number of periods (nper), payment per period (pmt), and present value (pv), the formula is `=RATE(nper, pmt, pv)periods_per_year`. For instance, if you have a loan with 36 monthly payments, a monthly payment of -$300, and a loan amount of $10,000, the formula would be `=RATE(36,-300,10000)12`. Ensure the pmt value is entered as a negative number. If there's a future value (fv), include it as the fourth argument. For example, `=RATE(36,-300,10000,0)12`. The result will be the APR, which you can format as a percentage.

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