The FV Function [Future Value calculation] 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])  
rateThe interest rate per period
nperThe 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]
0 – (minus) Payment is made at the end of the period
1 – (minus) Payment is made at the start of the period

FV Function 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.

FV Function

FV Function Result:

FV Function

To change the formula to have payment at the beginning of the month, you would change the formula to below.

FV Function

Result:

FV Function