2.9 KiB
2.9 KiB
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FV function
Overview
FV (Future Value) is a function of the Financial category that can be used to predict the future value of an investment or asset based on its present value.
FV can be used to calculate future value over a specified number of compounding periods. A fixed interest rate or yield is assumed over all periods, and a fixed payment or deposit can be applied at the start or end of every period.
If your interest rate varies between periods, use the FVSCHEDULE function instead of FV.
Usage
Syntax
FV(rate, nper, pmt, pv, type)
Argument descriptions
- rate. The fixed percentage interest rate or yield per period.
- nper. The number of compounding periods to be taken into account. While this will often be an integer, non-integer values are accepted and processed.
- pmt. The fixed amount paid or deposited each compounding period.
- pv (optional). The present value or starting amount of the asset (default 0).
- type (optional). A logical value indicating whether the payment due dates are at the end (0) of the compounding periods or at the beginning (any non-zero value). The default is 0 when omitted.
Additional guidance
- Make sure that the rate argument specifies the interest rate or yield applicable to the compounding period, based on the value chosen for nper.
- The pmt and pv arguments should be expressed in the same currency unit. The value returned is expressed in the same currency unit.
- To ensure a worthwhile result, one of the pmt and pv arguments should be non-zero.
- The setting of the type argument only affects the calculation for non-zero values of the pmt argument.
Details
- If rate = 0, FV is given by the equation:
FV = -pv - (pmt \times nper)
- If rate <> 0 and type = 0, FV is given by the equation: $$ FV = -pv \times (1 + rate)^{nper} - \dfrac{pmt\times\big({(1+rate)^{nper}-1}\big)}{rate}
* If *rate* <> 0 and *type* <> 0, FV is given by the equation:
$$ FV = -pv \times (1 + rate)^{nper} - \dfrac{pmt\times\big({(1+rate)^{nper}-1}\big) \times(1+rate)}{rate}
Examples
Links
- For more information about the concept of "future value" in finance, visit Wikipedia's Future value page.
- See also IronCalc's NPER, PMT, PV and RATE functions.
- Visit Microsoft Excel's FV function page.
- Both Google Sheets and LibreOffice Calc provide versions of the FV function.