Advanced Excel Financial - FV Function

Description

The FV function calculates the future value of an investment based on a constant interest rate. You can use FV with either periodic, constant payments, or a single lump sum payment.

Syntax

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

Arguments

Argument	Description	Required/ Optional
Rate	The interest rate per period.	Required
Nper	The total number of payment periods in an annuity.	Required
Pmt	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.	Required
Pv	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.	Optional
Type	The number 0 or 1 and indicates when payments are due. See Table given below. If type is omitted, it is assumed to be 0.	Optional

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

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

Notes

Make sure that you are consistent about the units you use for specifying rate and nper
- If you make monthly payments for four years at 12 percent annual interest, use 12%/12 for rate and 4*12 for nper
- If you make annual payments for four years at 12 percent annual interest, 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
If any of the specified arguments is non-numeric, FV returns #VALUE! error

Applicability

Excel 2007, Excel 2010, Excel 2013, Excel 2016

Example

advanced_excel_financial_functions.htm