FV Function – Future Value Calculation in Excel
The FV Function is built into Excel. It is a financial function used to calculate the Future Value of an investment. This function assumes constant payments with a constant interest rate.
FV( rate, nper, [pmt], [pv], [type] )
rate – The interest rate per period
nper – The number of periods for the life of the investment
[pmt] – Optional, specifies the payment per period
[pv] – Optional, specifies the present value of the investment
*Please note, [pmt] or [pv] must be provided.
[type] – Optional argument that defines whether the payment is made at the start of the end of a period.
0 – (minus) Payment is made at the end of the period
1 – (minus) Payment is made at the start of the period
Monthly Calculation Example
Let’s look at the following example with payment due at the end of each month. This noted in the formula as -B2, or -1500.
To change the formula to have payment to be beginning of the moth, you would change the formula to below.