This function returns the future value of an investment based on a present value, periodic payments, and a specified interest rate.

Syntax

FV(rate,numper,paymt,pval,type)

Arguments

This function has these arguments:

Argument |
Description |

rate |
Interest rate expressed as percentage (per period) |

numper |
Total number of payment periods |

paymt |
Payment made each period |

pval |
[Optional] Present value; if omitted, uses zero and the calculation is based on the paymt argument. |

type |
[Optional] Indicates when payments are due; at the end (0) or beginning (1) of the period; if omitted, the calculation uses the end (0) |

Remarks

Use consistent units for specifying the rate and number of periods arguments. If you make monthly payments on a five-year loan at 8 percent annual interest, use 0.08/12 for the rate argument and 5*12 for the number of periods argument. If you make annual payments on the same loan, use 0.08 for rate and 5 for number of periods.

For the arguments, money paid out (such as deposits in an investment) is represented by negative numbers; money you receive (such as dividend checks) is represented by positive numbers.

See the PV function for the equations for calculating financial values.

Data Types

Accepts numeric data for all arguments. Returns numeric data.

Examples

FV(A1/12,48,B1,1000,0)

FV(R1C1/12,48,R1C2,1000,0)

FV(0.005,60,-100,100,1) gives the result $6877.00

See Also