The Excel FV Function

Related Functions:
FVSCHEDULE
PV Function

Basic Description

The Excel FV function calculates the Future Value of an investment with periodic constant payments and a constant interest rate.

The syntax of the function is:

FV( rate, nper, [pmt], [pv], [type] )

Where the arguments are as follows:

rate-The interest rate, per period.
nper-The number of periods for the lifetime of the annuity.
[pmt]-

An optional argument that specifies the payment per period.

(Note that if the [pmt] argument is omitted, the [pv] argument must be supplied).
[pv]-

An optional argument that specifies the present value of the annuity - i.e. the amount that a series of future payments is worth now.

(If the [pv] argument is omitted, it takes on the default value 0. Also, if [pv] is omitted, the [pmt] argument must be supplied).
[type]-

An optional argument that defines whether the payment is made at the start or the end of the period.

The [type] argument can have the value 0 or 1, meaning:

0   -   the payment is made at the end of the period;
1   -   the payment is made at the start of the period.

If the [type] argument is omitted, it takes on the default value of 0 (denoting payments made at the end of the period).


Excel FV Function Examples

In the spreadsheets below, the Excel FV function is used to calculate the future value of two different investments.

Example 1

In the following spreadsheet, the Excel Fv function is used to calculate the future value of an investment of $1,000 per month for a period of 5 years. The present value is 0, the interest rate is 5% per year and the payments are made at the end of each month.

 Formulas:
 A
1Future value of an investment
of $1,000 per month over 5
years, with a present value of
$0, and an interest rate of 5%
per year (payment made at
end of each mth):
2=FV( 5%/12, 60, -1000 )
 Results:
 A
1Future value of an investment
of $1,000 per month over 5
years, with a present value of
$0, and an interest rate of 5%
per year (payment made at
end of each mth):
2$68,006.08

Note that, in this example:


Example 2

In the example below, the Excel Fv function is used to calculate the future value of an investment of $2,000 per quarter for a period of 4 years. The interest is 10% per year and each payment is made at the start of the quarter.

 Formulas:
 A
1Future value of an investment
of $2,000 per quarter over 4
years, with a present value of
$0, and an interest rate of 10%
per year (payment made at
start of each qtr):
2=FV( 10%/4, 16, -2000, 0, 1 )
 Results:
 A
1Future value of an investment
of $2,000 per quarter over 4
years, with a present value of
$0, and an interest rate of 10%
per year (payment made at
start of each qtr):
2$39,729.46

Note that, in this example:


Further details and examples of the Excel Fv function are provided on the Microsoft Office website.


Fv Function Errors

If you get an error from the Excel Fv Function, this is most likely to be the #VALUE error:

Common Errors
#VALUE!-Occurs if any of the supplied arguments are non-numeric.