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 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.
| 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 |
