rate - Required. Interest rate per period (e.g., 7%/12 for monthly, 0.05 for annual 5%).
nper - Required. Total number of payment periods (e.g., 30*12=360 for 30 years monthly).
pmt - Required. Payment made each period. Negative for deposits (e.g., -500 for $500/month).
pv - Optional. Optional. Present value / initial investment (default: 0). Negative for deposits.
type - Optional. Optional. 0 = payments at end of period (default), 1 = beginning of period.
| A | B | |
|---|---|---|
| 1 | Rate | 7% |
| 2 | Years | 30 |
| 3 | Monthly Payment | $500 |
| 4 | Future Value: | =FV(7%/12, 30*12, -500) $566,764.05 |
Example: $500/month for 30 years
=FV(0.00583, 360, -500) → $566,764
Example: $5K start + $200/month
=FV(0.005, 216, -200, -5000) → $82,073
Example: $10K lump sum at 8%
=FV(0.08, 10, 0, -10000) → $21,589
Example: Payments at period start
=FV(0.00417, 360, -100, 0, 1) → $83,573
Project retirement account growth with monthly contributions and compound interest. The FV function in Excel calculates how your 401k, IRA, or pension savings will grow over decades with regular deposits. This Excel FV formula is critical for retirement planners, financial advisors, and individuals setting retirement goals. By modeling different contribution amounts and rates of return, you can determine whether your current savings rate will meet your retirement income needs, making the FV function essential for long-term financial planning and wealth accumulation strategies.
| A | B | C | |
|---|---|---|---|
| 1 | Rate | 7% | (annual return) |
| 2 | Years | 30 | (retirement timeline) |
| 3 | Monthly | $500 | (contribution) |
| 4 | Future Value | =FV(7%/12, 30*12, -500) $566,764 |
Calculate college fund growth starting with an initial lump sum plus regular monthly contributions. The Excel FV function handles both present value (initial deposit) and periodic payments (monthly contributions) simultaneously. This FV formula is perfect for parents planning 529 college savings plans, grandparents setting up education trusts, or anyone building wealth through combined lump sum and recurring deposit strategies. The compound interest effect on both initial capital and ongoing contributions creates powerful wealth accumulation.
| A | B | C | |
|---|---|---|---|
| 1 | Initial Deposit | $5,000 | (pv) |
| 2 | Monthly | $200 | (pmt) |
| 3 | Years | 18 | (until college) |
| 4 | Total Saved | =FV(6%/12, 18*12, -200, -5000) $82,073 |
❌ The Problem:
✅ Solution:
=FV(7%/12, 30*12, -500)Divide annual rate by 12 for monthly rate, multiply years by 12 for monthly periods. The FV function in Excel requires rate and nper to match - if payments are monthly, rate must be monthly rate and nper must be number of months.
❌ The Problem:
✅ Solution:
=FV(5%, 10, -100)Use negative pmt for deposits/contributions (cash you pay out). The Excel FV formula returns positive result showing what you will have in the future. Think: negative payments going out now = positive value coming back later.
❌ The Problem:
✅ Solution:
=FV(6%, 10, -1000, -5000, 1)Use type=1 when payments occur at the start of each period (annuity due). The FV function in Excel calculates higher values with type=1 because each payment has one more period to grow. Most retirement contributions are end-of-period (type=0), but some annuities pay at the beginning.
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