The financial world is filled with complex calculations and formulas, and for those navigating the realm of interest accruals, the ACCRINTM function in Excel plays a crucial role. ACCRINTM is a powerful tool designed to calculate the accrued interest for a security that pays interest at maturity. In this blog post, we will delve into the intricacies of the ACCRINTM function, exploring its syntax, usage, and practical examples.

Understanding ACCRINTM Function in Excel


Syntax of ACCRINTM:

Let's start by understanding the syntax of the ACCRINTM function:

=ACCRINTM(issue, maturity, rate, par, [basis])

  • issue: The issue date of the security.
  • maturity: The maturity date of the security.
  • rate: The annual interest rate of the security.
  • par: The face value of the security.
  • [basis]: An optional argument representing the day-count basis to be used in the calculation.

Understanding the Arguments:

Issue and Maturity Dates:

  • The issue and maturity arguments are straightforward. They represent the dates when the security was issued and when it matures, respectively. Ensure these dates are entered in a valid date format in Excel.
Interest Rate (Rate):

  • The rate argument represents the annual interest rate of the security. It's important to ensure that the rate is provided on an annual basis and is consistent with the compounding frequency.
Face Value (Par):

  • par is the face value or the principal amount of the security. This is the amount that will be repaid at maturity.
Day-Count Basis ([basis]):

  • The optional [basis] argument specifies the day-count basis to be used in the calculation. This argument is essential for accurately calculating accrued interest. If omitted, Excel defaults to the U.S. (NASD) 30/360 day-count basis.
Practical Examples:
Let's walk through a couple of examples to better understand how to use the ACCRINTM function.

Example 1: Basic ACCRINTM Calculation

=ACCRINTM("01/01/2023", "12/31/2023", 0.05, 1000)

This formula calculates the accrued interest for a security issued on January 1, 2023, maturing on December 31, 2023, with a 5% annual interest rate and a face value of $1000. 

Example 2: ACCRINTM with a Specific Day-Count Basis

=ACCRINTM("01/01/2023", "12/31/2023", 0.05, 1000, 2)
In this case, the formula specifies a day-count basis of 2, which is the actual/actual day-count basis. This allows for a more precise calculation of accrued interest.


The ACCRINTM function in Excel is a valuable tool for financial analysts, accountants, and anyone dealing with interest-bearing securities. Understanding its syntax and practical application empowers users to make accurate interest accrual calculations. Whether you're managing investments or preparing financial statements, the ACCRINTM function proves to be an indispensable asset in your financial toolkit.