FV function

Note: This draft page is under construction 🚧

Overview

FV (Future Value) is a function of the Financial category that can be used to predict the future value of an investment or asset based on its present value.

FV can be used to calculate future value over a specified number of compounding periods. A fixed interest rate or yield is assumed over all periods, and a fixed payment or deposit can be applied at the start or end of every period.

If your interest rate varies between periods, use the FVSCHEDULE function instead of FV.

Usage

Syntax

FV(rate, nper, pmt, pv=0, type=FALSE) => fv

Argument descriptions

• rate (number, required). The fixed percentage interest rate or yield per period.
• nper (number, required). "nper" stands for number of periods, in this case the number of compounding periods to be taken into account. While this will often be an integer, non-integer values are accepted and processed.
• pmt (number, required). "pmt" stands for payment, in this case the fixed amount paid or deposited each compounding period.
• pv (number, optional). "pv" is the present value or starting amount of the asset (default 0).
• type (Boolean, optional). A logical value indicating whether the payment due dates are at the end (FALSE or 0) of the compounding periods or at the beginning (TRUE or any non-zero value). The default is FALSE when omitted.

Additional guidance

• Make sure that the rate argument specifies the interest rate or yield applicable to the compounding period, based on the value chosen for nper.
• The pmt and pv arguments should be expressed in the same currency unit.
• To ensure a worthwhile result, one of the pmt and pv arguments should be non-zero.
• The setting of the type argument only affects the calculation for non-zero values of the pmt argument.

Returned value

FV returns a number representing the future value expressed in the same currency unit that was used for the pmt and pv arguments.

Error conditions

• In common with many other IronCalc functions, FV propagates errors that are found in any of its arguments.
• If too few or too many arguments are supplied, FV returns the #ERROR! error.
• If the value of any of the rate, nper, pmt or pv arguments is not (or cannot be converted to) a number, then FV returns the #VALUE! error.
• If the value of the type argument is not (or cannot be converted to) a Boolean, then FV again returns the #VALUE! error.
• For some combinations of valid argument values, FV may return a #NUM! error or a #DIV/0! error.
• For more information about the different types of errors that you may encounter when using IronCalc functions, visit our Error Types page.

Details

• If $\text{type}\ne 0$, $\text{fv}$ is given by the equation:

$$\text{fv}=-\text{pv}\times (1+\text{rate}{)}^{\text{nper}}-{\displaystyle \frac{\text{pmt}\times ((1+\text{rate}{)}^{\text{nper}}-1)\times (1+\text{rate})}{\text{rate}}}$$

• If $\text{type}=0$, $\text{fv}$ is given by the equation:

$$\text{fv}=-\text{pv}\times (1+\text{rate}{)}^{\text{nper}}-{\displaystyle \frac{\text{pmt}\times ((1+\text{rate}{)}^{\text{nper}}-1)}{\text{rate}}}$$

• For any $\text{type}$, in the special case of $\text{rate}=0$, $\text{fv}$ is given by the equation:

$$\text{fv}=-\text{pv}-(\text{pmt}\times \text{nper})$$

Examples

See some examples in IronCalc.

Links

• For more information about the concept of "future value" in finance, visit Wikipedia's Future value page.
• See also IronCalc's NPER, PMT, PV and RATE functions.
• Visit Microsoft Excel's FV function page.
• Both Google Sheets and LibreOffice Calc provide versions of the FV function.