FV
The future value of an investment at a constant rate, from payments each period and a present value.
Group: Financial. Compatible with DAX.
Syntax
FV ( <rate>, <nper>, <pmt> [, <pv>] [, <type>] )| Parameter | Type | Description |
|---|---|---|
rate | Number | The interest rate per period. For monthly payments on a yearly rate, divide that rate by 12. |
nper | Number | How many payment periods there are, all told. |
pmt | Number | The amount paid every period, the same each time. |
pv | Number optional | The amount already there at the start; 0 when left out. |
type | Number optional | When the payments fall: 0 (when left out) at the end of each period, 1 at its start. |
Returns
Number. What the investment is worth once the last payment is made.
Remarks
- Cash going out is negative, cash coming in positive. A loan you take is a positive pv, so the payments on it come out negative; a deposit you make is negative. Savings paid in are negative, so their future value comes out positive.
- Give rate and nper in the same period: 6 % a year paid monthly for 4 years is a rate of 0.06 / 12 and an nper of 48.
- With a rate of 0 it is simply −(pv + pmt × nper).
Examples
Saving for a new tank
50,000 put aside now and 5,000 a month for three years, at 3 % a year. Paying at the start of each month earns a little more.
EVALUATE
ROW (
"End of month", FV ( 0.03 / 12, 36, -5000, -50000 ),
"Start of month", FV ( 0.03 / 12, 36, -5000, -50000, 1 )
)| End of month | Start of month |
|---|---|
| 242805.371584372 | 243275.628588236 |