Rate adaptation is an essential mechanism in the WLAN network to enhance network performance. The latest amendments of IEEE 802.11 standards introduced a large number of rate levels. Traditional rate adaptation algorithms are inadequate to manage large rate search space and the interference created by an increasing number of devices. In this paper, a new rate adjustment approach, ChannelEstimator Endorsed Rate Adaptation (CEERA) is designed, implemented, andanalysed using a network simulation tool. This algorithm used the Block acknowledgment and RSSI effectively to identify the channel conditions. A weighted value obtained by processing these two parameters was used for rate selection. The research was simulated using NS3 for different network scenarios. Results were evident for the improved performance of the CEERA algorithm when compared with the RaCa. The result also shows that it consumes lower energy than the RaCA with improved packet delivery ratio and throughput.