Category: Number (Financial) function
This function calculates the future value of an investment based on a constant interest rate.
Optional current value (cur_val) argument.
fv(rate, num_per, payment, cur_val)
Optional payments due (pay_due) argument.
fv(rate, num_per, payment, cur_val, pay_due)
| Argument | Type | Description |
|---|---|---|
| rate | Number (decimal) | The interest rate of the loan (entered as a decimal). |
| num_per | Number | The number of payments of the loan (usually in months or years). |
| payment | Number (negative) | The payment made each period (that does not change), entered as a negative value. Includes principal and interest, but no fees or taxes. |
| curr_val | Number | Optional. The current value of the annuity. |
| pay_due | Binary (0 or 1) | Optional. This value defines when payments are due. Options: 0 (the beginning of the period; default), or 1 (the end of the period). |
Return value type: Number
For an accurate calculation, be sure to convert rate and num_per to the same time period. If calculating a monthly payment and rate is an annual rate, divide it by 12 (rate / 12). If num_per is given as years, multiply by 12 (num_per * 12).
Calculate the future value: Interest rate is 10% (annual), number of periods is 36 (months), payment is $225 per month.
fv( (0.10/12), 36, -225) //Returns $9400.91 (rounded)
Calculate the future value: Interest rate is 14% (annual), payment is $6000 per year, current value is $8,000.
fv( 0.14, 10, -6000, 8000) //Returns $86,366.00 (rounded)
Calculate the future value: Interest rate is 1% (monthly), payment $600 per month, current value is $0, payments due at the end of the period.
fv(0.01, 48, -600, 0, 1) //Returns $37100.90 (rounded)