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 lumpsum 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 fouryear 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.
How do I copy an example?
 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
 Press CTRL+C.
 Create a blank workbook or worksheet.
 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.
 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.

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 do I copy an example?
 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
 Press CTRL+C.
 Create a blank workbook or worksheet.
 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.
 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.

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

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

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.