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])

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] |

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 Result:**

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