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Future value vs. Present value

Excel formula: Future value vs. Present value

This simple example shows how present value and future value are related. In the example shown, Years, Compounding periods, and Interest rate are linked in columns C and F like this:


The formula to calculate future value in C9 is:


The formula to calculate present value in F9 is:


No matter how years, compounding periods, or rate are changed, C5 will equal F9 and C9 will equal F5.

Dave Bruns

Excel Formula Training

Formulas are the key to getting things done in Excel. In this accelerated training, you'll learn how to use formulas to manipulate text, work with dates and times, lookup values with VLOOKUP and INDEX & MATCH, count and sum with criteria, dynamically rank values, and create dynamic ranges. You'll also learn how to troubleshoot, trace errors, and fix problems. Instant access. See details here.