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Excel ACCRINT Function

Summary

The Excel ACCRINT function calculates the accrued interest of a security that pays interest periodically. The Excel ACCRINT function is a part of financial functions in Excel.

How to use

The Excel ACCRINT function helps to figure out how much interest a security earns between two dates, and it’s often used in finance, accounting, and investment analysis.

Syntax

The syntax for the Excel ACCRINT function is as follows:

=ACCRINT(issue, first_interest, settlement, rate, par, frequency, [basis], [calc_method])

  • issue (required): The date the security was initially issued.
  • first interest (required): The first date the interest will be paid.
  • settlement (required): The settlement date of the security.
  • rate (required): The annual coupon rate of the security.
  • par (required): The par value of the security. If you omit or ignore, then it will use $1,000 by default.
  • frequency (required): The number of coupon payments in a year (1 for annual, 2 for semiannual, and 4 for quarterly).
  • basis (optional): The day count basis type. If you omit, then it will use zero (0) by default. Below are the day count basis types:
    • 0 – US (NASD) 30/360
    • 1 – Actual/Actual
    • 2 – Actual/360
    • 3 – Actual/365
    • 4 – European 30/360
  • calc method (optional): The logical value to calculate the total accrued interest when settlement date is after the first interest date.
    • TRUE (1): The total accrued interest from issue to settlement date. If you omit, then by default it will be considered as TRUE (1).
    • FALSE (0): The total accrued interest from first interest to settlement date.

Notes

  • The Excel ACCRINT function will return #VALUE Error if issue, first interest or settlement date is not valid.
  • The dates must be entered using the DATE function or as serial numbers recognized by Microsoft Excel.
  • The ACCRINT formula will return #NUM Error if any of the below condition is met:
    • rate <=0 par <=0 issue >= settlement
    • frequency is other than 1, 2 or 4
    • basis <0 or >4
  • The dates and basis are truncated to integers in ACCRINT.

Examples

Example 1

Let’s understand the ACCRINT function by using the below data:

  • A1: issue date: January 1, 2025
  • A2: first interest payment: Jun 30, 2025
  • A3: settlement date: April 1, 2025
  • A4: annual coupon rate: 5%
  • A5: par value: $1,000
  • A6: frequency: 2 (semi-annual)

The below formula will return $12.50 as accrued interest.

=ACCRINT(A1,A2,A3,A4,A5,A6)

Example 2

Let’s take another example of ACCRINT function by considering all the arguments:

  • A1: issue date: January 1, 2025
  • A2: first interest payment: Jun 30, 2025
  • A3: settlement date: April 1, 2025
  • A4: annual coupon rate: 5%
  • A5: par value: $1,000
  • A6: frequency: 2 (semi-annual)
  • A7: day count basis: 3 (actual/365)
  • A8: calc method: 1 (TRUE)

The below formula will return $12.33 as accrued interest.

=ACCRINT(A1,A2,A3,A4,A5,A6,A7,A8)

FAQs

What is Excel ACCRINT Function?

The Excel ACCRINT function returns the accrued interest for a security that pays interest on a periodic basis. The Excel ACCRINT function helps you to figure out how much interest you’ve earned on investments, like bonds or certificates of deposit, during a specific time period. It’s really handy for people who work with money, like accountants, investors, or anyone who wants to keep track of their finances better.

Let’s say you have some money invested in a bond, and you want to know how much interest you’ll earn over a year. Instead of doing all the math by hand, you can use the ACCRINT function in Excel. You just need to tell Excel a few things, like the interest rate, when you bought the bond, and when it will mature etc. Then, ACCRINT function will quickly calculate the interest for you.

What is the difference between ACCRINT and ACCRINTM function?

There are two financial functions in Excel to calculate the accrued interest for the security and those are ACCRINT and ACCRINTM. Below is the difference between ACCRINT and ACCRINTM function:

  • in Excel ACCRINT function the interest is paid periodically, whereas
  • in Excel ACCRINTM function the interest is paid only one time that is at the time of maturity only.

Conclusion

The Excel ACCRINT function is a useful tool for people dealing with finances, like accountants, investors, and financial analysts. It helps to calculate the interest earned on investments over a specific period, making complex tasks quicker and simpler. By giving accurate results promptly, ACCRINT assists in making informed decisions about investments and financial plans.

Moreover, ACCRINT is easy to use and widely used in Excel, making it accessible to both experienced finance professionals and beginners. Its user-friendly design and reliable performance make it valuable for understanding investment performance and managing finances effectively in various situations. Ultimately, ACCRINT showcases how technology simplifies complicated financial calculations, empowering individuals and businesses to make smarter financial decisions.