Excel has a variety of financial functions that are useful ways to analyze investments. One of these is the **DURATION** function. **DURATION** is a function-driven version of the common Macauley duration formula. With a few simple inputs, you can use it to determine the duration of a bond security. Let’s learn how to use **DURATION** in Microsoft Excel.

## How to Use DURATION in Excel

**DURATION** in Excel is a powerful function. It performs a rather complex financial analysis based on a few simple inputs. This ensures speedy and accurate analysis. To use the **DURATION** formula, you’ll need the following inputs:

- The settlement date of the security.
- The maturity date of the security.
- The percent coupon rate of the security.
- The percent yield of the security.
- The frequency (annual, semiannual, etc).
- The basis (optional).

For simplicity, your best option is to list each of these values in its own cell. For example, you can place the settlement date in cell **A1**, the maturity date in cell **A2**, and so on. By placing the values into cells like this, you can streamline and simplify your formula.

Now, it’s time to build the **DURATION** formula. To do it, begin by clicking into any blank cell in your workbook. Type **=DURATION(**. Your formula will appear as:

=DURATION(

Then, you’ll need to select each of the required inputs. In this example, you’ll click cell **A1**, type a comma, click cell **A2**, and so forth. Your completed **DURATION** formula is:

=DURATION(A1,A2,A3,A4,A5,A6)

Hit **Enter** on your keyboard and Excel returns the **DURATION** solution: **12.408.**

As you can see, **DURATION** is a quick way to analyze the duration of an investment security. It removes the difficulty by performing all of the math for you. All you need are the basic inputs outlined above, and you’re all set.