Purpose
Return value
Syntax
=FV(rate,nper,pmt,[pv],[type])
- rate - The interest rate per period.
- nper - The total number of payment periods.
- pmt - The payment made each period. Must be entered as a negative number.
- pv - [optional] The present value of future payments. If omitted, assumed to be zero. Must be entered as a negative number.
- type - [optional] When payments are due. 0 = end of period, 1 = beginning of period. Default is 0.
Using the FV function
The future value (FV) function calculates the future value of an investment assuming periodic, constant payments with a constant interest rate.
Notes:
Units for rate and nper must be consistent. For example, if you make monthly payments on a four-year loan at 12 percent annual interest, use 12%/12 (annual rate/12 = monthly interest rate) for rate and 4*12 (48 payments total) for nper . If you make annual payments on the same loan, use 12% (annual interest) for rate and 4 (4 payments total) for nper .
If pmt is for cash out (i.e deposits to saving, etc), payment value must be negative; for cash received (income, dividends), payment value must be positive.
Purpose
Return value
Syntax
=FVSCHEDULE(principal,schedule)
- principal - The initial investment sum.
- schedule - Schedule of interest rates, provided as range or array.
Using the FVSCHEDULE function
The FVSCHEDULE function calculates the future value of a single sum based on a schedule of interest rates. The interest rates can vary in each period. As such, FVSCHEDULE can be used to find the future value of an investment with a variable or adjustable rate.
By contrast, the FV function can also be used to find the future value of a sum based on a given interest rate, it can’t handle different rates in different periods.
Example
In the example shown, an initial sum of $1000 is invested for 4 years. In each year, the rate is different as shown below:
| Period | Rate |
|---|---|
| Year 1 | 2.00% |
| Year 2 | 3.00% |
| Year 3 | 4.00% |
| Year 4 | 5.00% |
In the example, the rates are entered in the range C8:C11. The formula in F5 is:
=FVSCHEDULE(C5,C8:C11)
FVSCHEDULE returns $1,147.26, when currency number format is applied.
Schedule
The values in schedule can be provided as a range of cells (per the example) or an array constant. For example, the formula below provides the principal as C5, but rates are hardcoded into an array constant :
=FVSCHEDULE(C5,{0.02;0.03;0.04;0.05})
The result is the same as above, $1,147.26.
Notes
- Blank cells in the schedule are treated as zeros
- FVSCHEDULE will return #VALUE if any values are non-numeric
