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.
=FV (rate, nper, pmt, [pv], [type])
- rate – It is the interest rate per period.
- nper – It is the total number of payment periods.
- pmt – 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.
- 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.
- 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: