Excel FV Function
last modified October 5, 2026
The FV function calculates the future value of an investment or
loan based on periodic, constant payments and a constant interest rate. It
answers a simple question: if you start with a given balance and add or
withdraw the same amount every period, what will the balance be after a set
number of periods? This tutorial provides a comprehensive guide to using the
FV function with detailed examples. You'll learn basic syntax,
practical applications, and advanced techniques to master this financial
function.
FV Function Basics
The FV function compounds a present value forward in time and
adds the future value of a series of equal payments. It considers the interest
rate, the number of periods, and the payment amount. The result is the balance
at the end of the last period.
| Component | Description |
|---|---|
| Function Name | FV |
| Syntax | =FV(rate, nper, pmt, [pv], [type]) |
| Required Arguments | rate, nper, pmt |
| Optional Arguments | pv, type |
| Return Value | Future value of the investment |
This table breaks down the essential components of the FV
function. It shows the function name, syntax format, required and optional
arguments, and return value characteristics.
| Argument | Meaning |
|---|---|
| rate | Interest rate per period. Divide an annual rate by the number of periods per year, for example 5%/12 for monthly compounding. |
| nper | Total number of periods. Multiply the years by the periods per year, for example 10*12 for ten years of monthly periods. |
| pmt | Payment made each period. Cash paid out is negative and cash received
is positive. It cannot change over the life of the investment. If you omit
pmt, you must supply pv. |
| pv | Present value: the lump sum invested today. When omitted it defaults to 0. |
| type | Payment timing: 0 or omitted for the end of a period, 1 for the beginning. |
The rate and nper arguments must use the same time
unit. Use a monthly rate with a count of months, or an annual rate with a count
of years, but never mix the two. Excel evaluates the function with the
closed-form equation FV = -(pv*(1+rate)^nper + pmt*(1+rate*type)*((1+rate)^nper-1)/rate),
and when rate is 0 it reduces to FV = -(pv + pmt*nper).
Basic FV Example
This example demonstrates the simplest use of the FV function with regular payments and a constant interest rate.
=FV(5%/12, 10*12, -100)
This formula calculates the future value of $100 monthly payments for 10 years at 5% annual interest compounded monthly. The result will be $15,528.23. The negative payment indicates cash outflow, so the positive result is the money you receive at the end.
Understanding the Sign Convention
FV follows Excel's cash-flow sign convention: money you pay out is
negative and money you receive is positive. The function's result normally has
the opposite sign of the net cash you contribute. A deposit is entered as a
negative pmt, which produces a positive future value.
=FV(5%/12, 10*12, -100) ' 15528.23, you pay in each month =FV(5%/12, 10*12, 100) ' -15528.23, you take out each month
The size of the result is the same either way; only the sign changes. To show a
result as a positive number, wrap the formula in ABS:
=ABS(FV(5%/12, 10*12, -100)) returns 15528.23.
FV with a Lump Sum Investment
This example shows how to calculate future value with an initial lump sum investment plus regular contributions.
| A | B |
|---|---|
| Annual Rate | 6% |
| Years | 5 |
| Monthly Payment | -200 |
| Initial Investment | -5000 |
| Future Value | =FV(B1/12, B2*12, B3, B4) |
The table shows parameters for calculating future value with both an initial investment and regular contributions. The formula divides the annual rate by 12 for monthly compounding and multiplies the years by 12.
=FV(B1/12, B2*12, B3, B4)
This formula calculates the future value of a $5,000 initial investment plus $200 monthly payments for 5 years at 6% annual interest. The result is $20,698.26. Both payment and pv are negative, representing cash outflows.
FV with Payments at the Beginning of the Period
This example demonstrates using the type argument to specify
payments at the beginning of each period, which is called an annuity due.
| A | B |
|---|---|
| Quarterly Rate | 2% |
| Periods | 20 |
| Payment | -500 |
| Type | 1 |
| Future Value | =FV(B1, B2, B3, 0, B4) |
The table shows parameters for calculating future value with payments at the start of each period. Setting type to 1 means every payment earns one extra period of interest, so the future value is larger than with end-of-period payments.
=FV(B1, B2, B3, 0, B4)
This formula calculates the future value of $500 quarterly payments for 20 periods at 2% per quarter, with payments at the period start. The result is $12,391.66. The same deposits at period end would return only $12,148.68, which shows the advantage of paying earlier.
FV with Zero Interest Rate
When the interest rate is 0, Excel does not fail; it spreads the cash flows
evenly using the simple case FV = -(pv + pmt*nper). This makes
FV useful for interest-free savings plans.
=FV(0, 12, -100)
This formula saves $100 a month for 12 months with no interest. The result is exactly $1,200.00, the same as 100 * 12.
FV for Retirement Savings
This practical example shows how to project retirement savings using the FV function with realistic parameters.
| A | B |
|---|---|
| Annual Return | 7% |
| Years to Retirement | 30 |
| Monthly Contribution | -1000 |
| Current Savings | -50000 |
| Retirement Value | =FV(B1/12, B2*12, B3, B4) |
The table demonstrates retirement planning with current savings and regular contributions. The formula converts the annual parameters to monthly equivalents for accurate compounding.
=FV(B1/12, B2*12, B3, B4)
This formula projects $1,000 monthly contributions plus a $50,000 initial investment over 30 years at 7% annual return. The future value is $1,625,795.87. The negative inputs represent cash outflows (investments).
FV for a Loan Balance
This example shows how to use FV to calculate the remaining balance on a loan after making payments for a certain period.
| A | B |
|---|---|
| Annual Rate | 4.5% |
| Loan Term (years) | 30 |
| Loan Amount | 250000 |
| Years Paid | 10 |
| Remaining Balance | =FV(B1/12, B4*12, PMT(B1/12,B2*12,B3), B3) |
The table shows loan parameters and calculates the remaining balance after 10
years. It uses PMT to calculate the monthly payment first, then
FV to find the balance. The loan amount is a positive
pv (cash received) while the payment is negative (cash paid).
=FV(B1/12, B4*12, PMT(B1/12,B2*12,B3), B3)
PMT returns a monthly payment of -$1,266.71 for the $250,000 loan
at 4.5%. Feeding that payment and the positive loan amount into FV
returns -$200,223.59 after 120 months. The negative sign means the balance is
still owed: you would have to pay that amount to clear the loan.
FV with Variable Rates
This advanced example shows how to approximate FV with changing interest rates by compounding one year at a time.
| A | B |
|---|---|
| Initial Investment | -10000 |
| Year 1 Rate | 5% |
| Year 2 Rate | 4.5% |
| Year 3 Rate | 6% |
| Future Value | =FV(B4,1,0,-FV(B3,1,0,-FV(B2,1,0,B1))) |
The table demonstrates calculating future value with changing annual rates.
Each FV call compounds the balance for one year at that year's
specific rate.
=FV(B4,1,0,-FV(B3,1,0,-FV(B2,1,0,B1)))
This formula calculates the future value of a $10,000 investment whose rate
changes each year. Because FV returns the opposite sign of its
pv, each inner result is negated before it becomes the present
value of the next year. The result is $11,630.85.
FV Compared with PV and PMT
FV is one of three closely related time-value functions. They all
share the same arguments and the same sign convention, but each solves for a
different unknown.
| Function | Returns | Syntax |
|---|---|---|
| PV | Present value of a series of future cash flows | =PV(rate, nper, pmt, [fv], [type]) |
| PMT | Payment per period | =PMT(rate, nper, pv, [fv], [type]) |
| FV | Future value of a series of equal payments | =FV(rate, nper, pmt, [pv], [type]) |
The three functions are inverses of one another. PV discounts
future cash flows back to today, PMT solves for the periodic
payment, and FV compounds current values forward. Because
FV and PV sit at opposite ends of the same timeline,
one often checks the other: the present value of the $100 monthly deposits
above is =PV(5%/12, 10*12, -100), which returns $9,428.14, and
=FV(5%/12, 10*12, 0, -9428.14) brings it back to $15,528.23. In the
same way, =FV(5%/12, 60, PMT(5%/12,60,20000), 20000) returns 0,
confirming that a loan is fully paid off at the end of its term.
FV Errors and Troubleshooting
| Cause | Symptom | Fix |
|---|---|---|
| rate and nper use different time units | Result is far too high or too low | Match units, for example 5%/12 with 10*12 |
| pmt and pv use the same sign | Unexpected sign or magnitude | Enter inflows as positive and outflows as negative |
| An argument is text | #VALUE! error | Make sure the referenced cells contain numbers |
| rate is below -100% with a fractional nper | #NUM! error | Use a realistic interest rate |
| type is a value other than 0 or 1 | Payment treated as beginning-of-period | Use exactly 0 or 1 |
| pmt and pv are both 0 or omitted | Result is 0 | Supply at least one cash flow |
A future value that looks wrong is almost always a unit mismatch or a sign
mistake. Using a 5% annual rate directly with a monthly nper
understates the result, and entering a deposit as a positive number flips the
sign of the answer. Convert the rate to the same period as nper
and keep inflows and outflows on opposite signs before calling FV.
The FV function is the compounding counterpart of PV
and PMT, and it is central to financial planning in Excel. Use it
to project savings growth, retirement balances, loan payoffs, and the future
worth of any stream of equal payments. The two rules that prevent most mistakes
are to keep rate and nper in the same time unit, and
to enter cash inflows and outflows with opposite signs. With those habits,
FV turns a few inputs into a precise picture of a future balance.
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