ACCRINT Excel

What Is ACCRINT Excel Function?

The ACCRINT Excel function is a financial tool designed to calculate the accrued interest on a bond between interest payment dates. It is commonly used to accurately determine the amount of interest that has accumulated on an investment over a specified period.

This function takes into account the bond’s face value, its annual coupon rate, the issued date, the first interest date, the settlement date, and the requested periodicity frequency of payments.

In the following example, we will delve into the concept of the ACCRINT Excel function to achieve the desired outcome.

To apply the formula, simply enter it in cell B10, as shown below:

= ACCRINTM(B2,B3,B4,B5,B6,4,2,B9)

The resulting value will be promptly displayed in cell B6. 

Syntax

• Issue – This is the mandatory argument. This is the issue date of the security.
• First_interest – This is the mandatory argument. This is the first interest date of the security.
• Settlement – This is the mandatory argument. This is the settlement date of the security.
• Rate – This is the mandatory argument. This is the annual coupon rate of the security.
• Par – This is the mandatory argument. This is the par value of the security.
• Frequency – This is the mandatory argument. This is the number of coupon payments per year.
• Basis – This is the optional argument. This is the day count used in the calculation.

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 – This is the optional argument. This is the way to calculate total accrued interest when the settlement date is later than the first_interest date. This can be TRUE or FALSE.

How To Use ACCRINT Function In Excel? (With Steps)

In order to effectively utilize the ACCRINT function in Excel, please follow the steps outlined below.

#1 – Access From The Excel Ribbon

Step 1: To designate the cell where the result will be displayed, please select an empty cell. Next, navigate to the “Formulas” tab and click on it.

Step 2: To unlock more features, please go to the menu and choose the “Financial” option.

Step 3: To proceed, please navigate to the drop-down menu and select ACCRINT. 

Step 4: The Function Arguments window will appear. Please enter the values for the number of arguments in the “issue,” “first_interest,” “settlement,” “rate,” “par,” “frequency,” “basis,” and “calc-method” fields. Once you have completed this step, click on the OK button to continue. 

#2 – Enter The Worksheet Manually

Step 1: To designate an empty cell for the output, enter the formula =ACCRINT() in the selected cell. Another option is to type =A and then quickly double-click on the ACCRINT function from Excel’s extensive list of suggestions.

Step 2: To achieve the desired outcome, please press the Enter key.

Examples

Example #1 – Using DATE With ACCRINT

To grasp the functionality of the ACCRINT Excel function, which is specifically designed to calculate the accrued interest on a bond between interest payment dates, we will explore an illustrative example that will shed light on its capabilities using the DATE excel function with the ACCRINT Excel function. This will greatly enhance our understanding of this combination of two functions.

To optimize the calculation of the ACCRINT Excel function, it is crucial to follow the subsequent steps:

Step 1: Begin the calculation process by selecting cell B10, which will serve as the starting point for the formula.

Step 2: Enter the comprehensive DATE formula in cells B2, B3, and B4 for calculating the Issue date, First Interest date, & Settlement date.

Now enter the ACCRINT formula to calculate the accrued interest value;

= ACCRINT (B2, B3, B4, B5,B6,1,1,B9)

Step 3: The result will be instantly displayed in cell B10 and formulas in column C, as shown in the captivating image below.

Example #2 – Calculate Accrued Interest On US Treasury Bond

In the following example, we will examine the functionality of the ACCRINT Excel function, which is specifically designed to calculate the accrued interest on a bond between interest payment dates. We will demonstrate how to Calculate Accrued Interest on a US Treasury Bond using the ACCRINT Excel function. It is important to note that U.S. Treasury notes and bonds utilize the actual/actual day count basis. This analysis will significantly improve our comprehension of the calculation process using this function.

If you want to make sure the ACCRINT Excel function calculates correctly, follow these steps:

Step 1: Initiate the calculation process by selecting cell B12 as the initial point for the formula.

Step 2: Enter the ACCRINT formula to determine the accrued interest value:

=ACCRINT(B2, B4, B6, B7, B8, 2, 1, 2)

This formula will help you calculate the amount of interest that has accumulated. 

Step 3: The result will be displayed immediately in cell B12, and the formulas in column C will be updated accordingly, as illustrated in the image below.

Example #3 – Calculate Accrued Interest On A Simple Bond

In this illustration, we will be testing out the ACCRINT Excel function. This function is specifically made to calculate the accrued interest on a bond between interest payment dates. We will be using the function to calculate the accrued interest on a simple bond that follows the 30/360-day count basis. 

In order to enhance the efficiency of the ACCRINT Excel function calculation, it is essential to follow the steps outlined below carefully:

Step 1: Let’s choose cell B10 to start our calculation. This will be the foundation for our formula.

Step 2: Now, input the ACCRINT formula to determine the accrued interest value:

=ACCRINT(B2, B4, B6, B7, B8, 2, 0, 1)

Let’s calculate the accrued interest by using this formula.

Step 3: The result will be immediately displayed in cell B10, and the formulas in column C will be updated accordingly, as illustrated in the captivating image below.

Step 4: We can see the result in cell F10. The formulas in column G with a change in the Calc method value from 1 to 0, as illustrated in the captivating image below.

ACCRINT Excel Vs ACCRINTM Excel

• The differences between ACCRINT Excel and ACCRINTM Excel are crucial for accurate interest accruals. 
• The ACCRINT Excel function calculates the accrued interest on a security that pays periodic interest. In contrast, the ACCRINTM Excel functions similarly but differs in how it interprets the dates provided by adjusting them based on the user’s choice of basis. 
• The ACCRINT Excel function takes into account the issue date, first interest payment date, settlement date, rate, redemption value, and frequency of payments to determine the accrued interest. On the other hand, the ACCRINTM Excel function adjustment can lead to variations in calculations, especially when dealing with non-conventional securities. Professionals must be aware of these nuances to ensure precise accounting and financial reporting in their analyses.

Important Things To Note

• The “#NUM!” error occurs when the rate argument provided is less than or equal to 0, or the par value argument provided is less than or equal to 0.
• The frequency argument provided is not equal to 1, 2, or 4. The issue date is greater than or equal to the settlement date. The basis argument provided is not equal to 0, 1, 2, 3, or 4.
• The #VALUE! error occurs when the provided arguments for issue date, first interest date, or settlement date are not valid dates or when any of the arguments provided are non-numeric.
• Input dates should be accurately entered to avoid any errors in calculations or data analysis.

Frequently Asked Questions

Download Template

This article must help us understand the ACCRINT Excel Function’s formula and examples. You can download the template here to use it instantly.

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This has been a guide to ACCRINT Excel. Here we learn how to use it in excel, with syntax, examples, and downloadable template. You can learn more from the following articles –

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