How to Use the ACCRINT Function in Excel
This guide provides a comprehensive overview of the ACCRINT function in Microsoft Excel and Google Sheets. ACCRINT is designed to compute the accrued interest of a security over a specified period.
Function Syntax
The ACCRINT function is expressed with the following syntax:
| Argument | Description |
|---|---|
| issue | Date of purchase of the security. |
| first_interest | Date of the first interest payment. |
| settlement | Security settlement date. |
| rate | Annual coupon rate of the security. |
| par | Par value of the security. |
| [frequency] | (Optional) Number of coupon payments per year. Defaults to 1. |
| [basis] | (Optional) Day count basis for the calculation. Defaults to 0. |
Examples of Using the ACCRINT Function
1. Calculating the accrued interest on a security:
=ACCRINT("1-Jan-2021", "1-Apr-2021", "1-Jul-2021", 0.05, 1000, 2, 1)This formula computes the accrued interest for a security bought on 1-Jan-2021, with the first interest payment due on 1-Apr-2021, and a settlement date of 1-Jul-2021. The annual coupon rate is 5%, the par value is $1000, there are semi-annual coupon payments, and it uses an actual/actual day count basis (basis 1).
2. Calculating accrued interest with default frequency and basis:
=ACCRINT("1-Jan-2021", "1-Apr-2021", "1-Jul-2021", 0.05, 1000)This example calculates the accrued interest using the default settings for frequency (1 annual payment) and basis (0, or 30/360).
3. Using a different day count basis:
=ACCRINT("1-Jan-2021", "1-Apr-2021", "1-Jul-2021", 0.05, 1000, 2, 3)In this scenario, the accrued interest is calculated using a basis of 3 (actual/365) instead of the usual default of 0.
By mastering the ACCRINT function, users can precisely compute accrued interest on financial securities within Excel and Google Sheets.
More information: https://support.microsoft.com/en-us/office/accrint-function-fe45d089-6722-4fb3-9379-e1f911d8dc74