FV Function
Calculates the future value of a series of equal payments and/or a lump sum.
Syntax
Parameters
| Parameter | Description | Required |
|---|---|---|
| rate | Interest rate per period. | Required |
| nper | Total number of payment periods. | Required |
| pmt | Payment made each period (must remain constant). | Required |
| pv | Present value or lump-sum amount (default 0). | Optional |
| type | 0 = end of period (default), 1 = beginning of period. | Optional |
Basic Example
Future value of monthly savings
=FV(0.06/12, 120, -500)Saves $500 per month at 6% annual interest for 10 years. Result is positive because it is a future balance.
Advanced Examples
Example 1: FV with a starting balance
Retirement planningFuture value of an IRA with an initial balance and monthly contributions
=FV(0.07/12, 240, -500, -10000)How FV Works
FV discounts each payment back to the start and compounds it forward to the end of the investment term. Payments are treated as outflows, so they are typically entered as negative values.
Important Notes & Limitations
All inputs must use the same period unit (e.g., monthly rate and monthly nper).
Returns negative if all cash flows are positive, because Excel treats the result as the opposite cash flow.
Does not account for taxes or fees.
Common Errors & Fixes
Wrong magnitudeAnnual rate was not divided by periods per year.Fix: Divide the annual rate by the number of periods per year.
Negative resultPayments were entered as positive numbers.Fix: Enter payments as negative numbers to represent outflows.
Download Practice File
FV
fvPractice FV with Real Data
Download a sample CSV file with pre-populated data and practice exercises for the FV function. Works in both Excel and Google Sheets.
File format: CSV (comma-separated values) - opens in Excel, Google Sheets, and all spreadsheet apps
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