FV
Returns the future value of an investment based on periodic, constant payments and a constant interest rate.
FV(rate, nper, pmt, [pv], [type])Arguments
rateInterest rate per periodnperTotal number of payment periodspmtPayment made each period (negative = outflow)pvPresent value or initial investment(optional)type0 = end of period, 1 = beginning of period(optional)
=FV(5%/12, 120, -500)Value after saving $500/month for 10 years at 5%
=FV(7%/12, 360, -200)Value after investing $200/month for 30 years at 7%
=FV(4%, 20, 0, -10000)$10K invested for 20 years at 4% annual
- •Payments are negative (money you pay out), result is positive (money you receive)
- •Great for retirement planning and savings projections
- •Combine with PMT to plan investment strategies
- •Using an annual interest rate with a monthly nper without converting both to the same period - the rate must be divided and the term multiplied consistently to match monthly, quarterly, or annual compounding
- •Forgetting the sign convention - a positive pmt (money paid in, like regular savings deposits) produces a negative rate/pv setup expectation, and mixing signs incorrectly can flip the final result unexpectedly
- •Omitting the pv argument for an investment that already has an existing balance, which silently assumes a starting value of zero instead of the actual current balance
PVCalculates the present value equivalent of a future amount, essentially the inverse calculation of FV.PMTCalculates the periodic payment needed to reach a specific future value, using the same rate/nper structure as FV.NPERSolves for how many periods are needed to reach a target future value, rather than calculating the value itself.Why does FV give a negative result?
It follows the standard cash flow sign convention - if your payments (pmt) were entered as negative (money going out, like contributions), the resulting future value comes back positive to represent money received later, or vice versa depending on your setup.
Do I need to include the pv argument if I'm starting from zero?
No, pv defaults to 0 if omitted, which is correct for an investment starting from nothing. Include it explicitly if there's an existing balance.
How do I handle monthly contributions with FV?
Divide the annual rate by 12, multiply the number of years by 12 for nper, and use the monthly contribution amount as pmt - keeping all three arguments in the same monthly period is essential.
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