FV Function
The FV function in Google Sheets calculates the future value of an investment based on periodic, constant payments and a constant interest rate.
Syntax
FV(rate, number_of_periods, payment_amount, [present_value], [end_or_beginning])
rate
: The interest rate per period. This is a required parameter.number_of_periods
: The total number of payment periods. This is a required parameter.payment_amount
: The payment made each period. This is a required parameter.present_value
: (Optional) The present value, or the lump sum amount that a series of future payments is worth right now. If omitted, the default is 0.end_or_beginning
: (Optional) A value indicating when payments are due. Use 0 for payments at the end of the period (default), or 1 for payments at the beginning.
Examples
- Calculate Future Value
Calculate the future value of an investment with a 5% annual interest rate, over 10 years, with monthly payments of $100:
=FV(0.05/12, 10*12, -100)
This will output 15,528.46.
Notes
- The FV function assumes consistent payments and a consistent interest rate.
- If the payment_amount is an outflow (such as savings), it should be entered as a negative number.