# Excel FV function

## Summary

The Excel FV function calculates the future value (e.g., the remaining amount) of a loan or investment at a point in time in the future. The function assumes constant payments (or cashflow if an investment) will be made. The FV function is an Excel financial function.

## Function

=FV(rate, nper, pmt, [pv], [type])

## Arguments (inputs)

rate = the interest rate

nper = the number of periods (term of the loan, e.g., years, months) into the future for which the future value is being calculated

pmt = the payment per period

pv = [optional] the present value of the loan. Usually this is the initial value of the loan. If left blank it will default to 0.

type = [optional] 1 = payment at the beginning of the period, 0 = payment at the end of the period, if omitted it will default to end of period

Note: the pmt and nper inputs should be aligned, meaning that if the nper is entered in years, the pmt should be an annual payment.

## Return value

The FV function returns the future value for a loan or investment with constant payments or cashflow, at a point in time in the future.

## Example

In the example above the FV function calculates the future value for a loan with the terms listed in cells C5, C7, and C11. In this example, the initial loan was \$1,000, the loan annual payment is \$200, and the interest rate is 7%. We will calculate the future value (or the remaining loan balance) four years into the future, so nper is set to 4.

=FV(C11, C9, C7, -C5)

Note: A minus sign “-” is entered before the pmt argument (C5) because the payment is a negative cashflow (a payment from you to someone else). If a minus sign is not entered the function will not return the correct answer.

The result returned is \$422.81, which is the future value or remaining loan amount four years from now.