Table of Contents
NPer(rate, payment, curr_val)
Category: Number (Financial) function
Description
This function calculates the number of periods for an investment based on periodic payments and interest rate.
Additional syntax
Optional future value (fut_val) argument.
nper(rate, payment, curr_val, fut_val)
Optional payments due (pay_due) argument.
nper(rate, payment, curr_val, fut_val, pay_due)
Arguments
Argument | Type | Description |
---|---|---|
rate | Number (decimal) | The interest rate of the loan (entered as a decimal). |
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 | The current value of the annuity. |
fut_val | Number | Optional. The future value, or cash balance, to be achieved after the last payment (i.e., "0" to pay the loan off in full). The default, if not supplied, is 0. |
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
Remarks
For an accurate calculation, be sure to convert rate to the time period desired. If calculating a monthly rate and rate is given as years, divide by 12 (rate / 12).
Examples
Calculate the number of monthly periods: Interest rate is 12% (annual), payment is $100 per month, current value is -$500, final value is $12,000.
nper( (0.12/12), -100, -500, 12000) //Returns 74.34 (months, rounded)
Calculate the number of monthly periods: Interest rate is 2% (monthly), payment is $250 per month, current value is $0, final value is $20,000, payments due at the end of the period.
nper(0.02, -250, 0, 20000,1) //Returns 47.64 (months, rounded)
Calculate the number of yearly periods: Interest rate is 12%, payment $7200 per year, current value is $27,000, final value is 0 (paid off).
nper(0.12, -7200, 27000, 0) //Returns 5.28 (years, rounded)