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.
|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.