FV

Overview

Description	Calculates the future value of a recurring annuity investment at a set point in the future. It is based on an interest rate, a number of recurring payments, the amount of individual payments, the present value and either ordinary annuity or annuity due (type) indicating whether payments are due at the beginning or the end of period. Use this when you need to calculate how much a series of recurring payments will be worth at a future date given a fixed interest rate.
Syntax	`FV('Rate', 'Nper', 'Pmt' [, 'Pv' , ["Type"]])`
Parameters	Rate: The interest rate. Nper: Number of periods: the number of payments to be made. Pmt: Payment per period: the amount per period to be paid. Payments/costs should (but are not required to) be entered as a negative number e.g. -500. Pv (optional): Present value: the current value of the annuity. Defaults to `0`. Type (optional): `"1"` = payment at beginning of period (Annuity Due), `"0"` = payment at end of period (Ordinary Annuity). Defaults to `0`.
Notes	Argument `'Pmt'` is the leading input node. A leading input node is a function argument, for which we assume the levels to be correct. All other input nodes need to have the same dimensionality. Each input node can be a single number. Providing all inputs with the same dimensionality results in a noticeable performance improvement.
Limitations	All other inputs must not contain levels that are not in the leading input node `'Pmt'`. All level values that are in the leading input node `'Pmt'`, must be in all the other input nodes.

Positive Costs/Payments
In case the costs/payments are entered as a positive number within your model, this function needs to be multiplied by (-1).

Example

Future value of a recurring annuity

This example calculates the future value of 5 annual payments of 500 at a 3% interest rate, with payments made at the end of each period (ordinary annuity).

Rate (Interest Rate)	0.03
Nper (Number of Periods)	5
Pmt (Payment per Period)	-500
Pv (Present Value)	0
Type 1 = payment at beginning of period (Annuity Due) 0 = payment at end of period (Ordinary Annuity)	0

Formula: FV('Rate', 'Nper', 'Pmt', 'Pv', "Type")

→ FV Result
2,654.57

Related Functions

Function	When to use instead
PV	When you need the present value of future cash flows instead of the future value.
NPV	When you need the net present value of irregular cash flows with a discount rate.