NPER Function
The NPER function in Google Sheets calculates the number of periods required for an investment to reach a target value based on constant periodic payments and a constant interest rate.
Syntax
NPER(rate, payment_amount, present_value, [future_value], [end_or_beginning])
rate
: The interest rate per period. This is a required parameter.payment_amount
: The amount paid each period. This is a required parameter.present_value
: The present value, or the total amount that a series of future payments is worth now. This is a required parameter.future_value
: (Optional) The cash balance you want to attain after the last payment is made. Default is 0.end_or_beginning
: (Optional) When payments are due: 0 for end of period (default), 1 for beginning of period.
Examples
- Number of Periods Calculation
Calculate the number of periods needed to pay off a $1000 loan with monthly payments of $50 and an annual interest rate of 5%:
=NPER(5%/12, -50, 1000)
This will output approximately 21.54 months.
Notes
- NPER can be used to calculate the duration of loans, mortgages, or other types of financial investments.