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])
|rate||The interest rate per periodFor 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 nowIf omitted, then the pv is 0|
|type||When the payments are made0 – Payments are made at the end of the period1 – Payments are made at the beginning of the periodIf omitted, type is 0|
The examples below show the FV function being used calculate the total savings based on different parameters.