The FV Excel function is a Financial formula that calculates and returns the future value of a loan or an investment, based on constant payments and interest rate. In this guide, we’re going to show you how to use the Excel FV function and also go over some tips and error handling methods.
- All Excel versions
FV Function Excel Syntax
|rate||The interest rate for the loan.|
|nper||The total number of payments for the loan.|
|pmt||The constant payments for the loan.|
|[pv]||Optional. The present value, or a cash balance you want after the last payment is made. Default value is 0 (zero).|
Optional. When the payments are due.
0 = end of period. (Default)
1 = beginning of period.
Without present value and due date type
The FV function has 3 required arguments: rate, nper and pmt. Using these arguments, you can calculate the future value of a loan based on constant payments. The function assumes payments are made at the end of each period, and the loan is to be paid in full.
For example, the following formula calculates the future value of a loan which has $3,000 payments over 36 months with a 6% annual interest.
With present value and due date type
You can specify a target cash balance for after the last payment is made, and whether payments are to be made at the beginning of each period or the end.
The following formula is the extended version of the first example. It calculates the same payment amount for the same period and interest rate. The difference is that $50,000 has already been paid, and payments are made at the beginning of each period.