F.INV.RT Function

Calculates the inverse of the (right-tailed) F probability distribution

What is the F.INV.RT Function?

The F.INV.RT Function is categorized under Statistical functions. It will calculate the inverse of the (right-tailed) F probability distribution.

As a financial analyst, the function is useful in understanding the variability in two data sets. For example, we can use F.INV.RT if we wish to analyze the income diversity between two regions where a company sells its products.

F.INV.RT is an updated version of the FINV function that is available in earlier versions of MS Excel.

 

Formula

=F.INV.RT(probability,deg_freedom1,deg_freedom2)

 

The F.INV.RT function uses the following arguments:

  1. Probability (required argument) – It is the probability at which we evaluate the inverse Cumulative F Distribution. The value is between 0 and 1.
  2. Deg_freedom1 (required argument) – It is an integer specifying the numerator degrees of freedom.
  3. Deg_freedom2 (required argument) – It is an integer specifying the denominator degrees of freedom.

 

If p = F.DIST.RT(x,…), then F.INV.RT(p,…) = x. Here, we need to remember that the Excel F.INV function is the inverse of the cumulative form of the Excel F.DIST function.

That is, if:

F.DIST(x, deg_freedom1, deg_freedom2, True) = probability

Then,

F.INV(probability, deg_freedom1, deg_freedom2) = x

 

How to use the F.INV.RT Function in Excel?

To understand the uses of the F.INV.RT function, let’s consider an example:

 

Example

Suppose we are given the following data:

  • Probability associated with the F cumulative distribution: 04
  • Numerator degree of freedom: 4
  • Denominator degree of freedom: 2

 

To find out the inverse of the F probability distribution using the F.INV.RT function, we will use the following formula:

 

F.INV.RT Function 

 

We get the result below:

  F.INV.RT Function - Example

 

Things to remember about the F.INV.RT Function

  1. If either deg_freedom1 or deg_freedom2 is a decimal number, it is truncated to integers by MS Excel.
  2. #NUM! error – Occurs if either:
    • The probability that is provided is less than or equal to 0 or greater than 1; or
    • The arguments deg_freedom1 or deg_freedom2 is less than 1.
  3. #VALUE! error – Occurs when any of the arguments provided is non-numeric.
  4. The function was introduced in MS Excel 2010 and is available in subsequent versions.
  5. INV.RT seeks that value x such that F.DIST.RT(x, deg_freedom1, deg_freedom2) = probability. So, the precision of F.INV.RT depends on the precision of F.DIST.RT. F.INV.RT uses an iterative search technique. If the search fails to converge after 64 iterations, the function returns the #N/A error value.

 

Click here to download the sample Excel file

 

Additional resources

Thanks for reading CFI’s guide to important Excel functions! By taking the time to learn and master these functions, you’ll significantly speed up your financial analysis. To learn more, check out these additional resources:

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