Excel > Functions

FV Function

The Excel FV function is used to return the future value of an investment based on constant payments and a constant interest rate.

The syntax for the FV function is:

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

Argument

Purpose

rate

The interest rate per period

For example 7%/12 for monthly payments

nper

The number of payment periods

pmt

The payment amount per period

pv

The present value, or amount that the number of future payments is worth now

If omitted, then the pv is 0

type

When the payments are made

  • 0 - Payments are made at the end of the period
  • 1 - Payments are made at the beginning of the period

If omitted, type is 0

The examples below show the FV function being used calculate the total savings based on different parameters.

FV function calculating total savings

Function

Result

=FV(C5/12,D5*12,B5)

£5,856.50

=FV(C5/12,D5*12,B5,-250,1)

£6,178.08

=FV(C5/52,5*52,-50)

£14,954.22

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