# Future value of annuity

=FV(rate,periods,payment)

To get the present value of an annuity, you can use the FV function. In the example shown, the formula in C7 is:

=FV(C5,C6,-C4,0,0)

The FV function is a financial function that returns the future value of an investment. You can use the FV function to get the future value of an investment assuming periodic, constant payments with a constant interest rate. An annuity is a series of equal cash flows, spaced equally in time.

In this example, a $5000 payment is made each year for 25 years, with an interest rate of 7%. To calculate future value, the FV function is configured as follows like this in cell C7:

=FV(C5,C6,-C4,0,0)

with the following inputs:

**rate**- the value from cell C5, 7%.**nper**- the value from cell C6, 25.**pmt**- negative value from cell C4, -100000**pv**- 0.**type**- 0, payment at end of period (regular annuity).

With this information, the FV function returns $316,245.19. Note payment is entered as a negative number, so the result is positive.

### Annuity due

An annuity due is a repeating payment made at the *beginning* of each period, instead of at the *end* of each period. To calculate an annuity due with the FV function, set the *type* argument to 1:

=FV(C5,C6,-C4,0,1)

With type set to 1, FV returns $338,382.35.

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