## Summary

The Excel FV function is a financial function that returns the future value of an investment.

## Purpose

Get the future value of an investment

## Return value

future value

## Syntax

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

## Arguments

**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.

## Usage notes

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.