Main Content

effrr

Effective rate of return

collapse all in page

Syntax

Return = effrr(Rate,NumPeriods)

Description

Return = effrr(Rate,NumPeriods) calculates the annual effective rate of return. Compounding continuously returns Return equivalent to (e^Rate-1).

example

Examples

collapse all

Open Live Script

This example shows how to find the effective annual rate of return based on an annual percentage rate of 9% compounded monthly.

Return = effrr(0.09, 12)
Return = 
0.0938

Input Arguments

collapse all

Annual percentage rate, specified as a scalar numeric decimal.

Data Types: double

Number of compounding periods per year, specified as a scalar integer.

Data Types: double

Output Arguments

collapse all

Annual effective rate of return, returned as a scalar numeric decimal.

Version History

Introduced before R2006a

See Also

Topics