Excel HYPERLINK Function: Web, Email and Sheet Links

The Excel FV function calculates the future value of an investment with regular payments, a lump sum, or both, at a fixed rate of return.

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

PurposeFuture value of savings or investments

ReturnsThe value at the end of the period

Available inAll Excel versions, Excel for the web, Google Sheets

`rate`	The return per period. For monthly payments, divide the annual rate by 12.
`nper`	The total number of periods.
`pmt`	The payment each period. Enter it as negative, because it’s money you pay in.
`pv` optional	A lump sum at the start, also negative. Default is 0.
`type` optional	0 for payments at the end of each period (default), 1 for the start.

Table of Contents

Basic example: SIP

Investing 5,000 a month for 10 years at an assumed 12% a year:

=FV(C4/12,C5*12,-C3)

The SIP grows to about 1,150,193, from 600,000 invested. The minus sign before C3 makes the result positive.

For a one-time deposit, set pmt to 0 and put the amount in pv. With yearly compounding, use the yearly rate and years:

=FV(C4,C5,0,-C3)

1,00,000 at 7% for 5 years grows to 140,255.

Use both pmt and pv when you start with savings and keep adding to them:

=FV(C5/12,C6*12,-C4,-C3)

50,000 to start plus 2,000 a month at 10% grows to 237,140 in 5 years.

Returns on real investments vary. FV assumes the same rate every period, so treat the result as an estimate.

Keep rate and nper in the same units: monthly rate with months.
Enter payments and deposits as negative numbers to get a positive future value.
Set type to 1 if you invest at the start of each month. The result is slightly higher.
FV doesn’t account for tax or inflation.

Problem	Cause	Fix
Result is negative	Payment entered as positive	Use `-C3`
Result far too high	Annual rate used with monthly periods	Divide the rate by 12
`#VALUE!`	A text value	Check the inputs are numbers

Practice file

All three examples plus the payment-timing check in a cheat sheet.