How to use Excel FV Function

Introduction:-    

FV function in excel is a financial function. It is used to find the future value of an investment. It is a worksheet function and can be entered in the cell in which value is required.

Syntax:-

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

Arguments:-

  • rate โ€“ It is the interest rate per period.
  • nper โ€“ It is the total number of payment periods.
  • pmt โ€“ It is the payment made in each period. It should be entered as a negative number.
  • pv – The present value of future payments. Its default value is zero. It should be entered as a negative number.
  • type – When payments are due, 0 for the end of period and  1 for the beginning of period. Default value is 0.

Keynotes:-

  • Units for rate and nper must be synchronized.
  • If pmt is for cash out (deposits to saving), payment value must be negative; for cash received (income, dividends), payment value must be positive.

Examples

  • In this example, various arguments are entered in column A and their values are entered in column B and FV function is used to retrieve the result in column D. Formula used for calculation is:
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