Excel: FV Function
In Excel, the FV function returns the future value of an investment based on an interest rate and a constant payment schedule.
The syntax for the FV function is:
FV( interest_rate, number_payments, payment, PV, Type )
interest_rate is the interest rate for the investment.
number_payments is the number of payments for the annuity.
payment is the amount of the payment made each period.
PV is optional. It is the present value of the payments. If this parameter is omitted, the FV function assumes PV to be 0.
Type is optional. It indicates when the payments are due. Type can be one of the following values:
Value Explanation 0 Payments are due at the end of the period. (default) 1 Payments are due at the beginning of the period.
If the Type parameter is omitted, the FV function assumes a Type value of 0.
Applies To:
- Excel 2007, Excel 2003, Excel XP, Excel 2000
For example:
Let's take a look at a few examples:
This first example returns the future value of an investment where you deposit $5,000 into a savings account that earns 7.5% annually. You are going to deposit $250 at the beginning of the month, each month, for 2 years.
=FV(7.5%/12, 2*12, -250, -5000, 1)
This next example returns the future value of an investment where you deposit $8,000 into a savings account that earns 6% annually. You are going to deposit $50 at the end of the week, each week, for 4 years.
=FV(6%/52, 4*52, -50, -8000, 0)
This next example returns the future value of an investment where you deposit $6,500 into a savings account that earns 5.25% annually. You are going to deposit $100 at the end of the year, each year, for 10 years.
=FV(5.25%/1, 10*1, -100, -6500, 0)
VBA Code
The FV function can also be used in VBA code. For example:
Dim LValue As Currency
LValue = FV(0.0525/1, 10*1, -100, -6500, 0)
In this example, the variable called LValue would now contain the value of $12,115.19