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 spreadsheet.

How?

Create a blank spreadsheet.
Select the example in the Help topic.

Selecting an example from Help
Press CTRL+C.
In the spreadsheet, select cell A1, and press CTRL+V.
To switch between viewing the formula that returns the result and the result in the cell, select the cell and press F2 and then ENTER, or click Commands and Options on the spreadsheet toolbar, click the Formula tab, and look in the Formula in active cell (active cell) box.

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 spreadsheet.

How?

Create a blank spreadsheet.
Select the example in the Help topic.

Selecting an example from Help
Press CTRL+C.
In the spreadsheet, select cell A1, and press CTRL+V.
To switch between viewing the formula that returns the result and the result in the cell, select the cell and press F2 and then ENTER, or click Commands and Options on the spreadsheet toolbar, click the Formula tab, and look in the Formula in active cell (active cell) box.

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.