FV
FV('Rate', 'Nper', 'Pmt' [, 'Pv', ["Type"]])
The FV function calculates the future value of a recurring annuity investment at a set point in the future. It is based on an interest rate, a number of recurring payments, the amount of individual payments, the present value and either ordinary annuity or annuity due (type) indicating whether payments are due at the beginning or the end of period.
Use this function when you need to calculate how much a series of recurring payments will be worth at a future date given a fixed interest rate.
Parameters
- RateNode referenceRequired
- The interest rate.
- NperNode referenceRequired
- Number of periods: the number of payments to be made.
- PmtNode referenceRequired
- Payment per period: the amount of each payment made. Payments/costs should ideally be entered as a negative number, for example
-500, but this is not required. - PvNode referenceOptional
- Present value: the current value of the annuity. Default:
0. - TypeKeywordOptional
- Indicates when payments are due (
1= payment at beginning of period / annuity due,0= payment at end of period / ordinary annuity). Default:0.
Watch out
'Pmt'is the leading input node: its levels define the result’s shape, and every other input is aligned to it.- Every other input may use only levels that also exist on
'Pmt'. It may use fewer levels, but not a level that'Pmt'does not have. - On the levels it shares with
'Pmt', each input must cover the same level values, otherwise the rows do not line up and the function returns an error. - Each input can also be a single number.
- Giving every input the same levels as
'Pmt'skips an internal alignment step and improves performance. - If costs or payments are entered as positive numbers in your model, multiply the result by
(-1).
Example
Future value of a recurring annuity
This example calculates the future value of 5 annual payments of 500 at a 3% interest rate, with payments made at the end of each period (ordinary annuity).
| Parameter | Value |
|---|---|
Rate (Interest Rate) | 0.03 |
Nper (Number of Periods) | 5 |
Pmt (Payment per Period) | -500 |
Pv (Present Value) | 0 |
TypePayment at Beginning of Period (Annuity Due) = 1 Payment at End of Period (Ordinary Annuity) = 0 | 0 |
Formula: FV('Rate', 'Nper', 'Pmt', 'Pv', "Type")
| FV Result |
|---|
| 2,654.57 |