How to use the ACCRINT function
Author: Oscar Cronquist Article last updated on May 08, 2023
What is the ACCRINT function?
The ACCRINT function calculates the accrued interest for a security that pays periodic interest.
What is a security?
A security that pays interest is a bond that investors use to loan money to a company or a government in exchange for interest payments. The interest rate is fixed and does not change over the life of the security.
What is accrued interest?
In finance, accrued interest is the interest on a bond that has accumulated since the last coupon payment.
What is periodic interest?
The interest payments are usually made periodically, such as every three, six months or twelve months, until the security matures and the principal amount is repaid.
Table of Contents
1. ACCRINT Function Syntax
ACCRINT(issue, first_interest, settlement, rate, par, frequency, [basis], [calc_method])
2. ACCRINT Function Arguments
| issue | Required. The security's issue date. |
| first_interest | Required. The security's first interest date. |
| settlement | Required. The security's settlement date. The security settlement date is the date after the issue date when the security is traded to the buyer. |
| rate | Required. The security's annual coupon rate. |
| par | Required. The security's par value. Default value is $1,000. |
| frequency | Required. The number of coupon payments per year. |
| frequency | payments |
|---|---|
| 1 | Annual |
| 2 | Semiannual |
| 4 | Quarterly |
| [basis] | Optional. The type of day count basis to use. |
| Basis | Day count basis |
|---|---|
| 0 (default value) | US (NASD) 30/360 |
| 1 | Actual/actual |
| 2 | Actual/360 |
| 3 | Actual/365 |
| 4 | European 30/360 |
| [calc_method] | Optional. A logical value that specifies the way to calculate the total accrued interest when the date of settlement is later than the date of first_interest. |
| calc_method | Function returns |
|---|---|
| TRUE | Returns the total accrued interest from issue to settlement. |
| FALSE | Returns the accrued interest from first_interest to settlement. Default value. |
3. ACCRINT function Example
The image above shows the following details for a bond:
Issue date: March 1, 2018
First interest date: August 31, 2018
Settlement date: May 1, 2018
Coupon rate: 5% (0.05)
Par value: $2,000
Frequency: 4 (quarterly payments)
Basis: 0 (US (NASD) 30/360)
Formula in cell C9:
=ACCRINT(C2,C3,C4,C5,C6,C7,C8)
The ACCRINT function requires Excel dates to work properly, the image above shows Excel dates in cells C2, C3, and C4. The result is 16.9444444444444.
4. ACCRINT function #VALUE! error
The ACCRINT function may return a #VALUE! error if dates are entered as text values, the image above shows the #VALUE! error in cell C2.
Use the DATE function to enter dates (hard coded dates) in the ACCRINT function . For example, DATE(2018,3,1). The DATE function converts the specified year, month, and day to an Excel date (number).
The following formula shows how to use hard coded values in the ACCRINT function:
=ACCRINT(DATE(2018,3,1),DATE(2018,8,31),DATE(2018,5,1),0.05,2000,4,0)
The ACCRINT function returns the #NUM! error value:
- if the rate is less than 0 (zero).
- if par value is less than 0 (zero).
- if the frequency is not 1,2, or 4.
- basis is less than 0 (zero) or larger than 4.
- issue date is equal or larger than settlement date.
What is hard coded values in a formula?
Hard coded values in Excel are values that are entered directly into a formula instead of using cell references.
5. Get Excel file
Useful resources
Functions in this article
Functions in 'Financial' category
The ACCRINT function function is one of many functions in the 'Financial' category.
Calculates the accrued interest for a security that pays periodic interest.
Calculates the accrued interest for a security that pays interest at maturity.
Calculates the depreciation for each accounting period. This function is designed for the French accounting system.
Calculates the depreciation for each accounting period.
Calculates the accumulated interest based on a start and end period on a loan.
Calculates the accumulated principal based on a start and end period on a loan.
Calculates the depreciation of an asset for a given period using the fixed-declining balance method.
Calculates the depreciation of an asset for a given period using the double-declining balance method or based on user input.
Converts a decimal number to its equivalent in fractional numbers, used in securities denominated in dollars.
Calculates the effective annual interest rate, given the nominal annual interest rate and the number of compounding periods per year.
Returns the future value of an investment based on a constant interest rate.
Calculates the interest payment for a specific period for an investment based on repeated constant payments and a constant interest rate.
Calculates the interest paid during a specific period of an investment.
Calculates the nominal annual interest rate based on the effective rate and the number of compounding periods per year.
Calculates the number of periods for an investment based on periodic, constant payments and a fixed interest rate.
Calculates how many periods required by an investment to reach a given amount based on a rate in percentage.
Returns the payment needed for borrowing a fixed sum of money based on constant payments (annuity) and interest rate.
Calculates the principal payment for a specific period for an investment based on repeated constant payments and a constant interest rate.
Calculates the price per $100 nominal value of a bond that pays interest at maturity.
Calculates the net present value for an investment or loan.
Returns the interest rate per period of an annuity.
Calculates the growth of an investment in percent per period.
Calculates the yearly asset depreciation of a given year.
Calculates the par amount (face value) for a Treasury bill.
Calculates the yield for a Treasury bill.
Calculates the depreciation of an asset for a given period using the double-declining balance method or based on user input, you may use partial periods in this function.
Calculates net present value for cash flows that may or may not be periodic
Calculates the yield for a security that pays interest. The YIELD function is designed to calculate the bond yield.
Excel function categories
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Functions for backward compatibility with earlier Excel versions. Compatibility functions are replaced with newer functions with improved accuracy. Use the new functions if compatibility isn't required.
Perform basic operations to a database-like structure.
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Let's you manipulate binary numbers, convert values between different numeral systems, and calculate imaginary numbers.
Calculate present value, interest, accumulated interest, principal, accumulated principal, depreciation, payment, price, growth, yield for securities, and other financial calculations.
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Functions that let you return and manipulate logical values, and also control formula calculations based on logical expressions.
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You will find functions in this category that calculates random values, round numerical values, create sequential numbers, trigonometry, and more.
Calculate distributions, binomial distributions, exponential distribution, probabilities, variance, covariance, confidence interval, frequency, geometric mean, standard deviation, average, median, and other statistical metrics.
Functions that let you manipulate text values, substitute strings, find string in value, extract a substring in a string, convert characters to ANSI code among other functions.
Get data from the internet, extract data from an XML string and more.
Excel categories
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Allows you to filter data based on selected value , a given text, or other criteria. It also lets you filter existing data or move filtered values to a new location.
Lets you control what a user can type into a cell. It allows you to specifiy conditions and show a custom message if entered data is not valid.
Lets the user work more efficiently by showing a list that the user can select a value from. This lets you control what is shown in the list and is faster than typing into a cell.
Lets you name one or more cells, this makes it easier to find cells using the Name box, read and understand formulas containing names instead of cell references.
The Excel Solver is a free add-in that uses objective cells, constraints based on formulas on a worksheet to perform what-if analysis and other decision problems like permutations and combinations.
An Excel feature that lets you visualize data in a graph.
Format cells or cell values based a condition or criteria, there a multiple built-in Conditional Formatting tools you can use or use a custom-made conditional formatting formula.
Lets you quickly summarize vast amounts of data in a very user-friendly way. This powerful Excel feature lets you then analyze, organize and categorize important data efficiently.
VBA stands for Visual Basic for Applications and is a computer programming language developed by Microsoft, it allows you to automate time-consuming tasks and create custom functions.
A program or subroutine built in VBA that anyone can create. Use the macro-recorder to quickly create your own VBA macros.
UDF stands for User Defined Functions and is custom built functions anyone can create.
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