## Purpose

## Return value

## Syntax

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

*rate*- The interest rate per period.*nper*- The total number of payment periods.*pmt*- The payment made each period. Must be entered as a negative number.*pv*- [optional] The present value of future payments. If omitted, assumed to be zero. Must be entered as a negative number.*type*- [optional] When payments are due. 0 = end of period, 1 = beginning of period. Default is 0.

## How to use

The future value (FV) function calculates the future value of an investment assuming periodic, constant payments with a constant interest rate.

Notes:

1. Units for *rate* and *nper* must be consistent. For example, if you make monthly payments on a four-year loan at 12 percent annual interest, use 12%/12 (annual rate/12 = monthly interest rate) for *rate* and 4*12 (48 payments total) for *nper*. If you make annual payments on the same loan, use 12% (annual interest) for *rate *and 4 (4 payments total) for* **nper*.

2. If *pmt* is for cash out (i.e deposits to saving, etc), payment value must be negative; for cash received (income, dividends), payment value must be positive.