Future value in excel

FV, one of the financial functions, calculates the future value of an investment based on a constant interest rate. You can use FV with either periodic, constant payments, or a single lump sum payment.

Use the Excel Formula Coach to find the future value of a series of payments. At the same time, you’ll learn how to use the FV function in a formula.

Or, use the Excel Formula Coach to find the future value of a single, lump sum payment.

Syntax

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

For a more complete description of the arguments in FV and for more information on annuity functions, see PV.

The FV function syntax has the following arguments:

• Rate    Required. The interest rate per period.

• Nper    Required. The total number of payment periods in an annuity.

• Pmt    Required. The payment made each period; it cannot change over the life of the annuity. Typically, pmt contains principal and interest but no other fees or taxes. If pmt is omitted, you must include the pv argument.

• Pv    Optional. The present value, or the lump-sum amount that a series of future payments is worth right now. If pv is omitted, it is assumed to be 0 (zero), and you must include the pmt argument.

• Type    Optional. The number 0 or 1 and indicates when payments are due. If type is omitted, it is assumed to be 0.

Set type equal to	If payments are due
0	At the end of the period
1	At the beginning of the period

Remarks

• Make sure that you are consistent about the units you use for specifying rate and nper. If you make monthly payments on a four-year loan at 12 percent annual interest, use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 12% for rate and 4 for nper.

• For all the arguments, cash you pay out, such as deposits to savings, is represented by negative numbers; cash you receive, such as dividend checks, is represented by positive numbers.

Examples

Copy the example data in the following table, and paste it in cell A1 of a new Excel worksheet. For formulas to show results, select them, press F2, and then press Enter. If you need to, you can adjust the column widths to see all the data.

Data	Description
0.06	Annual interest rate
10	Number of payments
-200	Amount of the payment
-500	Present value
1	Payment is due at the beginning of the period (0 indicates payment is due at end of period)
Formula	Description	Result
=FV(A2/12, A3, A4, A5, A6)	Future value of an investment using the terms in A2:A5.	$2,581.40

Example 2

Data	Description
0.12	Annual interest rate
12	Number of payments
-1000	Amount of the payment
Formula	Description	Result
=FV(A2/12, A3, A4)	Future value of an investment using the terms in A2:A4.	$12,682.50

Example 3

Data	Description
0.11	Annual interest rate
35	Number of payments
-2000	Amount of the payment
1	Payment is due at the beginning of the year (0 indicates end of year)
Formula	Description	Result
=FV(A2/12, A3, A4,, A5)	Future value of an investment with the terms in cells A2:A4	$82,846.25

Example 4

Data	Description
0.06	Annual interest rate
12	Number of payments
-100	Amount of the payment
-1000	Present value
1	Payment is due at the beginning of the year (0 indicates end of year)
Formula	Description	Result
=FV(A2/12, A3, A4, A5, A6)	Future value of an investment using the terms in A2:A5.	$2,301.40

Summary

The Excel FV function is a financial function that returns the future value of an investment. You can use the FV function to get the future value of an investment assuming periodic, constant payments with a constant interest rate.

Purpose 

Get the future value of an investment

Return value 

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.

Syntax 

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

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.

Author

Dave Bruns

Hi — I’m Dave Bruns, and I run Exceljet with my wife, Lisa. Our goal is to help you work faster in Excel. We create short videos, and clear examples of formulas, functions, pivot tables, conditional formatting, and charts.

Рассчитаем Будущую стоимость инвестиции для различных способов начисления процента: по формуле простых процентов, сложных процентов и формуле аннуитета.

Будущая стоимость (Future Value), является суммой, в которую в будущем превратится определенная сумма денег, инвестированная ранее под известную процентную ставку. Она рассчитывается на базе концепции стоимости денег во времени: деньги, доступные в настоящее время, стоят больше, чем та же самая сумма в будущем, вследствие их потенциала обеспечить доход. Расчет Будущей стоимости, также как и

Приведенной (Текущей) стоимости

важен, так как, платежи, осуществленные в различные моменты времени, можно сопоставлять (сравнивать, складывать, вычитать) лишь после приведения их к одному временному моменту.

Будущая стоимость инвестиций зависит от того, каким методом начисляются проценты:

простые проценты

,

сложные проценты

или

аннуитет

(в

файле примера

приведено решение задачи для каждого из методов).

Простые проценты

Сущность метода начисления по простым процентам состоит в том, что проценты начисляются в течение всего срока инвестиции на одну и ту же сумму (проценты, начисленные  за предыдущие периоды, не капитализируются, т.е. на них проценты в последующих периодах не начисляются).

При начислении простых процентов формула для расчета будущей стоимости (FV) инвестиций имеет следующий вид:

FV = PV * (1+i*n)

где PV —

настоящая (приведенная) стоимость

(сумма, которая инвестируется в настоящий момент и на которую начисляется процент); i — процентная ставка

за период

начисления процентов (например, если проценты начисляются раз в год, то годовая; если проценты начисляются ежемесячно, то за месяц (=годовая ставка/12)); n – количество периодов времени, в течение которых начисляются проценты.

Как видно из формулы FV (в MS EXCEL используется аббревиатура БС) это ни что иное, как

наращенная сумма

с использованием простых процентов. Про вычисление наращенной суммы при постоянной и переменной ставке можно прочитать в статье

Простые проценты в MS EXCEL

.

Примечание

. В MS EXCEL нет отдельной функции для расчета Будущей стоимости по методу Простых процентов. Функция

БС()

используется только для расчета в случае сложных процентов и аннуитета. Хотя, указав в качестве аргумента Кпер значение 1, а в качестве ставки указать i*n, то можно заставить

БС()

рассчитать Будущую стоимость и по методу простых процентов (см.

файл примера

).

Сложные проценты

При использовании сложных ставок процентов процентные деньги, начисленные после каждого периода начисления, присоединяются к сумме долга. Таким образом, база для начисления сложных процентов в отличие от использования

простых процентов

изменяется в каждом периоде начисления. Присоединение начисленных процентов к сумме, которая послужила базой для их начисления, называется капитализацией процентов. Иногда этот метод называют «процент на процент» (см.

файл примера

). Формула для расчета Будущей стоимости в случае начисления по сложным процентам имеет следующий вид:

FV = PV * (1+i)^n

где PV —

настоящая (приведенная) стоимость

(сумма, которая инвестируется в настоящий момент и на которую начисляется процент); i — процентная ставка

за период

начисления процентов (например, если проценты начисляются раз в год, то годовая; если проценты начисляются ежемесячно, то за месяц). Предполагается, что процентная ставка не изменяется в течение всего срока инвестирования; n – количество периодов времени, в течение которого начисляются проценты.

Про вычисление Будущей стоимости по сложным процентам можно прочитать в статье

Сложные проценты в MS EXCEL

. В этой статье разобраны случаи применения функции

БС()

и формула капитализации m раз в год. В статье

Сложные проценты в MS EXCEL. Переменная ставка

разобраны случаи применения функции

БЗРАСПИС()

для расчета будущей стоимости при переменной ставке. В статье

Непрерывные проценты

Будущая стоимость рассчитывается при непрерывном начислении процентов.

Аннуитет

Если, помимо начальной инвестиции, через равные периоды времени производятся дополнительные равновеликие платежи (дополнительные инвестиции), то расчет Будущей стоимости существенно усложняется См. статью

Аннуитет. Определяем в MS EXCEL Будущую Стоимость

.

В случае, если сумма начальной инвестиции =0 и нужно определить Будущую стоимость периодических равновеликих платежей, то это можно сделать по формуле (см.

файл примера

):

FV = PMT * (((1+i)^n)-1) / i

где PMT – размер платежа при аннуитете; i — процентная ставка

за период

начисления процентов (например, если проценты начисляются раз в год, то годовая; если проценты начисляются ежемесячно, то за месяц). В формуле предполагается, что проценты начисляются в конце периода; n – количество периодов времени, в течение которых начисляются проценты (и делаются платежи).

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How do you calculate future value on a spreadsheet?

To use the future value function, simply type =FV( into any cell of the spreadsheet. Once you type in =FV(, Microsoft Excel knows you are trying to calculate a future value function and guides you right along each step of the way: The order of the variables is the same as in Google Sheets.

What is the formula to solve for future value?

The future value formula is FV=PV(1+i)ⁿ, where the present value PV increases for each period into the future by a factor of 1 + i.

How do you use NPV in Excel?

The NPV formula. It’s important to understand exactly how the NPV formula works in Excel and the math behind it. NPV = F / [ (1 + r)^n ] where, PV = Present Value, F = Future payment (cash flow), r = Discount rate, n = the number of periods in the future is based on future cash flows.

How do you calculate future value using CAGR in Excel?

Calculate CAGR in Excel

1. nper – The total number of payment periods.
2. pmt – The payment amount.
3. pv – The present value.
4. fv – [optional] The future value, or cash balance you want to be attained after the last pmt.
5. type – [optional] The payment type.
6. guess – [optional] Your guess for what the rate will be.

How do you calculate present value and future value?

NPV = F / [ (1 + r)^n ] where, PV = Present Value, F = Future payment (cash flow), r = Discount rate, n = the number of periods in the future.

How do you calculate NPV of future cash flows?

What is the formula for net present value?

1. NPV = Cash flow / (1 + i)t – initial investment.
2. NPV = Today’s value of the expected cash flows − Today’s value of invested cash.
3. ROI = (Total benefits – total costs) / total costs.

How do you calculate NPV example?

Example: Same investment, but try it at 15%.

1. You invested $500 now, so PV = -$500.00. Money In: $570 next year:
2. PV = $570 / (1+0. 15)¹ = $570 / 1. 15 = = $495.65 (to nearest cent)
3. Net Present Value = $495.65 – $500.00 = -$4.35. So, at 15% interest, that investment is worth -$4.35. It is a bad investment.

How do you do discount in Excel?

=RATE (nper, pmt, pv, [fv], [type], [guess]) The Excel formula for calculating the discount rate—often used for calculating the interest rate for a loan or determining the rate of return required for hitting a particular investment objective.

How do I calculate CAGR 3 years in excel?

read more the method for finding the CAGR value in your excel spreadsheet. The formula will be “=POWER (Ending Value/Beginning Value, 1/9)-1”. You can see that the POWER function replaces the ˆ, which was used in the traditional CAGR formula in excel.

What is future value example?

Future value is what a sum of money invested today will become over time, at a rate of interest. For example, if you invest $1,000 in a savings account today at a 2% annual interest rate, it will be worth $1,020 at the end of one year. Therefore, its future value is $1,020.

How do you use NPV in Google Sheets?

The syntax of the NPV function is as follows:: =NPV(discount, cashflow1, [cashflow2,… ])

1. = is the equals sign that starts off any function in Google Sheets.
2. NPV is the name of our function.
3. discount is the discount rate of investment over one period.
4. cashflow1 is the first future cash flow.

What is NPV explain with example?

Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project.

How do you take 20% off a price?

How do I take 20 % off a price?

1. Take the original price.
2. Divide the original price by 5.
3. Alternatively, divide the original price by 100 and multiply it by 20.
4. Subtract this new number from the original one.
5. The number you calculated is the discounted value.
6. Enjoy your savings!

How do you find discount rate with future value?

Formula for the Discount Factor
NPV = F / [ (1 + r)^n ] where, PV = Present Value, F = Future payment (cash flow), r = Discount rate, n = the number of periods in the future).

How do I calculate 5 year CAGR in Excel?

There’s no CAGR function in Excel. However, simply use the RRI function in Excel to calculate the compound annual growth rate (CAGR) of an investment over a period of years.

Is RRI same as CAGR?

RRI is the equivalent interest rate for growth of an investment. Generally it is used to calculate the Compound Annual Growth Rate (CAGR). It returns the interest rate for the given period of time having future and present value of investment.

How do I calculate my 3 year growth rate?

Divide the current year’s total revenue from last year’s total revenue. This gives you the revenue growth rate. For example, if the company earned $300,000 in revenue this year, and earned $275,000 last year, then the growth rate is 1.091. Cube this number to calculate the growth rate three years from now.

How does future value work?

Future value is the value of an asset at a specific date. It measures the nominal future sum of money that a given sum of money is “worth” at a specified time in the future assuming a certain interest rate, or more generally, rate of return; it is the present value multiplied by the accumulation function.

What is the future value of $1000?

That means in 1 years’ time $1,000 will have a future value (FV) of $1,100.

What is future value method?

Future value (FV) refers to a method of calculating how much the present value (PV) of an asset or cash will be worth at a specific time in the future.