Excel Office

Excel How Tos, Tutorials, Tips & Tricks, Shortcuts

ACCRINT function: Description, Usage, Syntax, Examples and Explanation

What is ACCRINT function in Excel?

ACCRINT function is one of the Financial functions in Microsoft Excel that returns the accrued interest for a security that pays periodic interest.

Syntax of ACCRINT function

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

The ACCRINT function syntax has the following arguments:

  • Issue: The security’s issue date.
  • First_interest: The security’s first interest date.
  • Settlement: 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:The security’s annual coupon rate.
  • Par: The security’s par value. If you omit par, ACCRINT uses $1,000.
  • Frequency: The number of coupon payments per year. For annual payments, frequency = 1; for semiannual, frequency = 2; for quarterly, frequency = 4.
  • Basis(Optional): The type of day count basis to use.

Note: Problems can occur if dates are entered as text. Therefore, all dates should be entered by using the DATE function, or formatted as date under format cell to avoid errors.

Basis Day count basis
0 or omitted 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. A value of TRUE (1) returns the total accrued interest from issue to settlement. A value of FALSE (0) returns the accrued interest from first_interest to settlement. If you do not enter the argument, it defaults to TRUE.

ACCRINT formula explanation

  • Microsoft Excel stores dates as sequential serial numbers so they can be used in calculations. By default, January 1, 1900 is serial number 1, and January 1, 2008 is serial number 39448 because it is 39,448 days after January 1, 1900.
  • Issue, first_interest, settlement, frequency, and basis are truncated to integers.
  • If issue, first_interest, or settlement is not a valid date, ACCRINT returns the #VALUE! error value.
  • If rate ≤ 0 or if par ≤ 0, ACCRINT returns the #NUM! error value.
  • If frequency is any number other than 1, 2, or 4, ACCRINT returns the #NUM! error value.
  • If basis < 0 or if basis > 4, ACCRINT returns the #NUM! error value.
  • If issue ≥ settlement, ACCRINT returns the #NUM! error value.
  • ACCRINT is calculated as follows:Equationwhere:
    • Ai = number of accrued days for the ith quasi-coupon period within odd period.
    • NC = number of quasi-coupon periods that fit in odd period. If this number contains a fraction, raise it to the next whole number.
    • NLi = normal length in days of the quasi-coupon period within odd period.

Example of ACCRINT function

Steps to follow:

1. Open a new Excel worksheet.

2. Copy data in the following table below and paste it in cell A1

Note: For formulas to show results, select them, press F2 key on your keyboard and then press Enter.

You can adjust the column widths to see all the data, if need be.

Data Description
39508 Issue date
39691 First interest date
39569 Settlement date
0.1 Coupon rate
1000 Par value
2 Frequency is semiannual (see above)
0 30/360 basis (see above)
Formula Description Result
=ACCRINT(A2,A3,A4,A5,A6,A7,A8) Accrued interest for a treasury bond with the terms above. 16.666667
=ACCRINT(DATE(2008,3,5),A3,A4,A5,A6,A7,A8,FALSE) Accrued interest with the terms above, except the issue date is March 5, 2008. 15.555556
=ACCRINT(DATE(2008, 4, 5), A3, A4, A5, A6, A7, A8, TRUE) Accrued interest with the terms above, except the issue date is April 5, 2008, and the accrued interest is calculated from the first_interest to settlement. 7.2222222

Leave a Reply

Your email address will not be published. Required fields are marked *