FV

Returns the future value of an investment based on periodic, constant payments and a constant interest rate.

Syntax

FV(rate,nper,pmt,pv,type)

For a more complete description of the arguments in FV and for more information on annuity functions, see PV.

Rate is the interest rate per period.

Nper is the total number of payment periods in an annuity.

Pmt is the payment made each period; it cannot change over the life of the annuity. Typically, pmt contains principal and interest but no other fees or taxes. If pmt is omitted, you must include the pv argument.

Pv is the present value, or the lump-sum amount that a series of future payments is worth right now. If pv is omitted, it is assumed to be 0 (zero), and you must include the pmt argument.

Type is the number 0 or 1 and indicates when payments are due. If type is omitted, it is assumed to be 0.

Set type equal to	If payments are due
0	At the end of the period
1	At the beginning of the period

Remarks

Make sure that you are consistent about the units you use for specifying rate and nper. If you make monthly payments on a four-year loan at 12 percent annual interest, use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 12% for rate and 4 for nper.
For all the arguments, cash you pay out, such as deposits to savings, is represented by negative numbers; cash you receive, such as dividend checks, is represented by positive numbers.

Example 1

The example may be easier to understand if you copy it to a blank worksheet.

How?

Create a blank workbook or worksheet.
Select the example in the Help topic. Do not select the row or column headers.

Selecting an example from Help
Press CTRL+C.
In the worksheet, select cell A1, and press CTRL+V.
To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Tools menu, point to Formula Auditing, and then click Formula Auditing Mode.

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A	B
Data	Description
6%	Annual interest rate
10	Number of payments
-200	Amount of the payment
-500	Present value
1	Payment is due at the beginning of the period (see above)
Formula	Description (Result)
=FV(A2/12, A3, A4, A5, A6)	Future value of an investment with the above terms (2581.40)

Note The annual interest rate is divided by 12 because it is compounded monthly.

Example 2

The example may be easier to understand if you copy it to a blank worksheet.

How?

Create a blank workbook or worksheet.
Select the example in the Help topic. Do not select the row or column headers.

Selecting an example from Help
Press CTRL+C.
In the worksheet, select cell A1, and press CTRL+V.
To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Tools menu, point to Formula Auditing, and then click Formula Auditing Mode.

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A	B
Data	Description
12%	Annual interest rate
12	Number of payments
-1000	Amount of the payment
Formula	Description (Result)
=FV(A2/12, A3, A4)	Future value of an investment with the above terms (12,682.50)

Note The annual interest rate is divided by 12 because it is compounded monthly.

Example 3

The example may be easier to understand if you copy it to a blank worksheet.

How?

Create a blank workbook or worksheet.
Select the example in the Help topic. Do not select the row or column headers.

Selecting an example from Help
Press CTRL+C.
In the worksheet, select cell A1, and press CTRL+V.
To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Tools menu, point to Formula Auditing, and then click Formula Auditing Mode.

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A	B
Data	Description
11%	Annual interest rate
35	Number of payments
-2000	Amount of the payment
1	Payment is due at the beginning of the year (see above)
Formula	Description (Result)
=FV(A2/12, A3, A4,, A5)	Future value of an investment with the above terms (82,846.25)

Note The annual interest rate is divided by 12 because it is compounded monthly.

Example 4

The example may be easier to understand if you copy it to a blank worksheet.

How?

Create a blank workbook or worksheet.
Select the example in the Help topic. Do not select the row or column headers.

Selecting an example from Help
Press CTRL+C.
In the worksheet, select cell A1, and press CTRL+V.
To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Tools menu, point to Formula Auditing, and then click Formula Auditing Mode.

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A	B
Data	Description
6%	Annual interest rate
12	Number of payments
-100	Amount of the payment
-1000	Present value
1	Payment is due at the beginning of the year (see above)
Formula	Description (Result)
=FV(A2/12, A3, A4, A5, A6)	Future value of an investment with the above terms (2301.40)

Note The annual interest rate is divided by 12 because it is compounded monthly.