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FV

The FV function calculates the future value of an investment based on periodic constant payments and a constant interest rate. It takes into account the present value of the investment, the number of periods in which the payments are made, and the compounding frequency. This formula is commonly used in financial planning and investment analysis.

Usage

Use the FV formula with the syntax shown below, it has 3 required parameters and 2 optional parameters:

=FV(rate, number_of_periods, payment_amount, [present_value], [end_or_beginning])
Parameters:
  1. rate (required):
    The interest rate per period of the investment.
  2. number_of_periods (required):
    The number of periods in which payments are made.
  3. payment_amount (required):
    The amount of the constant periodic payment.
  4. present_value (optional):
    The present value of the investment. If omitted, it is assumed to be zero.
  5. end_or_beginning (optional):
    A flag indicating whether payments are made at the end or the beginning of each period. If omitted, it is assumed to be false, indicating that payments are made at the end of each period.

Examples

Here are a few example use cases that explain how to use the FV formula in Google Sheets.

Retirement planning

Use FV to calculate how much money you'll have saved for retirement based on regular contributions and a fixed interest rate.

Mortgage analysis

Use FV to calculate the total amount of interest paid over the life of a mortgage, based on the principal, interest rate, and length of the loan.

College savings

Use FV to calculate the future value of a college savings account based on regular contributions and a fixed interest rate.

Common Mistakes

FV not working? Here are some common mistakes people make when using the FV Google Sheets Formula:

Missing arguments

One or more required arguments are missing. Check that all required arguments are included in the formula.

Incorrect arguments

One or more arguments are not in the correct format. Check that all arguments are in the correct format and are valid.

Incorrect order of arguments

The arguments are in the incorrect order. Check that all arguments are in the correct order.

Incorrect rate

The rate argument is incorrect. Check that the rate is in the correct format and is a number.

Incorrect number of periods

The number_of_periods argument is incorrect. Check that the number_of_periods is in the correct format and is a number.

Related Formulas

The following functions are similar to FV or are often used with it in a formula:

  • PV

    The PV function in Google Sheets calculates the present value of a regular payment stream or a lump sum amount, based on a constant interest rate. It is commonly used in financial analysis to determine the value of investments or loans. This function returns a negative value, as it represents money flowing out from the user.

  • RATE

    The RATE formula returns the interest rate per period of an annuity. This formula is often used in financial analyses to calculate the rate of return on an investment. It assumes that payments are made at regular intervals and that the interest rate remains constant throughout the duration of the annuity.

  • NPER

    The NPER function calculates the total number of payment periods required to pay off an investment based on a constant payment amount, a fixed interest rate, and the present value of the investment. It is commonly used in financial planning and investment analysis.

  • PMT

    The PMT formula in Google Sheets is a financial function that calculates the periodic payment required to fully pay off a loan or investment based on a constant interest rate and a fixed number of payments. It is commonly used to determine loan payments, mortgage payments, and annuity payments.

Learn More

You can learn more about the FV Google Sheets function on Google Support.