Excel FV Function

FV calculates the future value of an initial lump sum, equal periodic payments, or both, using a constant rate.

Use it to project savings after regular deposits or grow a lump sum over a fixed number of periods.

1
Set the rate and number of periods Use a constant rate per period and a matching period count.
2
Enter the starting amount and payments Specify an initial lump sum, an equal payment each period, or both. Choose whether periodic payments occur at the beginning or end.
3
Calculate their future value FV compounds the initial amount for the full term and each payment from its payment date to the final period, combining them into one future value.

FV syntax & arguments

Syntax

=FV(rate, nper, pmt, [pv], [type])
Required Optional
  1. 1

    rate

    Required

    The constant interest or discount rate per period. Use an annual rate for annual cash flows or a monthly rate for monthly cash flows. To convert an annual rate to a monthly rate, divide by 12 if it is a nominal annual rate compounded monthly. If it is an effective annual rate, use (1+annual_rate)^(1/12)-1 to find the equivalent monthly rate.

  2. 2

    nper

    Required

    The total number of periods. This should correspond to the rate period. For instance, use months with a monthly rate or years with an annual rate.

  3. 3

    pmt

    Required

    The fixed payment each period. Use a negative amount for money paid out, or 0 when growing only an initial lump sum.

  4. 4

    pv

    Optional

    The balance or lump sum at time zero. Money received is positive and money paid out is negative. Defaults to 0.

  5. 5

    type

    Optional

    When periodic payments occur. This changes payment timing, not the date of pv.

    • 0: Payments at the end of each period. This is the default when the argument is omitted.
    • 1: Payments at the beginning of each period.

Example

=FV(10%,2,-100,-1000,1)

Return the future value after two years of a 1000 initial deposit and 100 deposited at the beginning of each year, given a constant annual interest rate of 10%.

FV caveats

  • What positive and negative amounts mean

    The sign of pv describes the starting amount: positive for money you receive, negative for money you pay or invest. A pv of 0 means no starting amount.

    The sign of pmt describes the regular payments: positive for money you receive, negative for money you pay out. A pmt of 0 means no regular payments.

    FV compounds these amounts to their equivalent value at the end of the final period, using the specified interest rate. A positive result represents money available to receive, such as accumulated savings; a negative result represents money owed or payable, such as a remaining loan balance. A result of 0 means the amounts balance out by that point.

  • Rate and periods must use matching units

    For 36 monthly deposits at a nominal annual rate of 6% compounded monthly, use 6%/12 for rate and 36 for nper. Entering 6% directly would apply 6% every month. If 6% is an effective annual rate, use (1+6%)^(1/12)-1 to find the equivalent monthly rate. For comparison, 1% per month compounds to about 12.68% per year.

  • Payment timing changes the value

    Omitted type or 0 means end-of-period payments; 1 means beginning-of-period payments. Beginning-of-period deposits earn one extra period of interest, producing a higher future savings value at a positive rate. The pv amount always stays at time zero.

  • A lump sum needs a zero payment

    To grow a single initial amount, enter 0 for pmt and put the amount in pv. Putting it in pmt would repeat that amount every period.

  • Payments and rate stay constant

    FV assumes equally spaced, equal payments and one rate for all periods. A changing payment schedule needs each cash flow compounded separately.

  • Zero interest means no growth

    At rate=0, FV returns -(pv+pmt*nper). For example, =FV(0,3,-200,-1500) returns 2100, regardless of payment timing.

Planning a savings target? Use PMT to find the regular deposit needed, or PV to work back to the starting amount.

Intro FV practice problem

Solve the intro problem directly here, or open it on its own page.

Open full problem

Intro Future Savings Pro problem

FV
Intro ☆☆☆
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Advanced FV practice problems

Use FV alongside other Excel functions in realistic, less-prescriptive challenges.

No advanced FV problems are currently available.