How To Calculate Future Value In Excel

As the compounding periods are monthly 12 we divided the interest rate by 12.

How to calculate future value in excel. The future value fv function in excel 2013 is found on the financial buttons drop down menu on the ribbons formulas tab altmi. Here fv is future value pv is present value r is the annual return and n is the number of years. Fv ratenperpmt pv type the rate nper pmt and type arguments are the same as those used by the pv function. For example if an investment of 10000 earns an annual interest rate of 4 the investments future value after 5 years can be calculated by typing the following formula into any excel cell.

Click in the cell in which you wish the result of your formula to show. Nper the total number of payment periods. The fv function calculates the future value of an investment. How to calculate future value using excel.

B1 h1 months 0 6b2 h2 0417 to calculate the. Next fill in the information for the cells in each row. As the monthly payments are paid out they are entered into the function as negative values. The formula to use is.

Future value is a time value of money calculation. To calculate future value the pv function is configured as follows. 10000145 which gives the result 1216652902. Pmt the value from cell c4 100000.

Also for the total number of payment periods we divided by compounding periods per year. The syntax of this function is. Rate the interest rate per period. The future value of the investment rounded to 2 decimal places is 1216653.

Understand the concept of future value. Must be entered as a negative number. Nper the value from cell c6 25. If you invest your money with a fixed annual return we can calculate the future value of your money with this formula.

If you deposit a small amount of money every month your future value can be calculated using excels fv function. Pv optional the present value of future payments. Spreadsheet on the right shows the excel pv function used to calculate the present value of an investment that earns an annual interest rate of 4 and has a future value of 15000 after 5 years. Rate the value from cell c5 7.

Now that we have our. Must be entered as a negative number. How to calculate the future value of an investment using excel step 1. The process will be easiest if you use the spreadsheet as a table to keep track of the different variables and.

Pv 4 5 0 15000 which gives the result 1232891.