FV function

This article describes the formula syntax and usage of the FV function (function: A prewritten formula that takes a value or values, performs an operation, and returns a value or values. Use functions to simplify and shorten formulas on a worksheet, especially those that perform lengthy or complex calculations.) in Microsoft Excel.

Description

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.

The FV function syntax has the following arguments (argument: A value that provides information to an action, an event, a method, a property, a function, or a procedure.):

  • Rate    Required. The interest rate per period.
  • Nper    Required. The total number of payment periods in an annuity.
  • Pmt    Required. 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    Optional. 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    Optional. 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.

Examples

Example 1

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

ShowHow do I copy an example?

  1. Select the example in this article. If you are copying the example in Excel Online, copy and paste one cell at a time.
    Important: Do not select the row or column headers.

Selecting an example from Help

Selecting an example from Help

  1. Press CTRL+C.
  2. Create a blank workbook or worksheet.
  3. In the worksheet, select cell A1, and press CTRL+V. If you are working in Excel Online, repeat copying and pasting for each cell in the example.
    Important: For the example to work properly, you must paste it into cell A1 of the worksheet.
  4. To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Formulas tab, in the Formula Auditing group, click the Show Formulas button.

After you copy the example to a blank worksheet, you can adapt it to suit your needs.

 
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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.

ShowHow do I copy an example?

  1. Select the example in this article. If you are copying the example in Excel Online, copy and paste one cell at a time.
    Important: Do not select the row or column headers.

Selecting an example from Help

Selecting an example from Help

  1. Press CTRL+C.
  2. Create a blank workbook or worksheet.
  3. In the worksheet, select cell A1, and press CTRL+V. If you are working in Excel Online, repeat copying and pasting for each cell in the example.
    Important: For the example to work properly, you must paste it into cell A1 of the worksheet.
  4. To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Formulas tab, in the Formula Auditing group, click the Show Formulas button.

After you copy the example to a blank worksheet, you can adapt it to suit your needs.

 
1
2
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4
5

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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

 
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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

 
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3
4
5

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7

8
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.

 
 
Applies to:
Excel 2010, Excel Web App, SharePoint Online for enterprises, SharePoint Online for professionals and small businesses