# FVSCHEDULE

The `FVSCHEDULE` function returns the future value of an initial principal amount after applying a series of compound interest rates. The function is commonly used in financial modeling to calculate the future value of an investment portfolio or retirement account based on projected interest rates. The function takes two parameters: the initial principal amount and a schedule of interest rates that will be applied to the principal.

## Usage

Use the `FVSCHEDULE` formula with the syntax shown below, it has 2 required parameters:

Parameters:
1. principal (required):
The initial principal amount that will be used to calculate the future value of the investment. The principal must be a positive number.
2. rate_schedule (required):
A range of cells that contains the interest rate schedule. The first cell in the range should contain the interest rate for the first period, the second cell should contain the interest rate for the second period, and so on. The interest rates must be entered as decimal numbers or as cell references that contain decimal numbers.

## Examples

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

### Calculating future value of a single investment

Suppose you invest \$10,000 today in a savings account that pays 5% interest for the first year, and then 7% interest for the second year. You can use the `FVSCHEDULE` function to calculate the future value of this investment after two years.

### Estimating future value of a retirement portfolio

If you know the expected interest rates for your retirement portfolio in each year, you can use the `FVSCHEDULE` function to estimate the future value of your portfolio at different points in the future. This can help you plan for your retirement and adjust your investments as needed.

### Forecasting future value of a bond

If you know the coupon rate and expected interest rates for a bond over its lifetime, you can use the `FVSCHEDULE` function to forecast the future value of the bond at different points in time. This can help you make informed decisions about whether to buy, hold, or sell the bond.

## Common Mistakes

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

### Incorrect number of arguments

The FVSCHEDULE formula requires two arguments: the principal amount and the rate schedule. Make sure you have included both arguments in the formula.

### Incorrect data type

The principal amount should be a number, and the rate schedule should be a range of cells containing numbers. Make sure you have entered the correct data types in the formula.

### Wrong order of arguments

The principal amount should be the first argument, followed by the rate schedule. Make sure you have entered the arguments in the correct order.

### Rate schedule not in ascending order

The rate schedule must be in ascending order, with each rate corresponding to the time period immediately following the previous one. Make sure your rate schedule is correctly ordered.

### Negative principal amount

The principal amount should be a positive number. If you have entered a negative number, the formula will return an error. Make sure your principal amount is positive.

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

• `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.

• `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.

• `NPV`

The `NPV` function calculates the net present value of a series of cash flows, discounted by a specified rate. It is commonly used to determine the present value of an investment, where the cash flows represent incoming and outgoing payments. The function takes a discount rate and one or more cash flow values as input.

• `XIRR`

The `XIRR` function in Google Sheets calculates the internal rate of return (IRR) for a series of cash flows that occur at irregular intervals. It returns the annualized percentage rate earned by an investment, taking into account the dates on which each payment was made. The function is most commonly used in financial analysis to compare the returns on different investment opportunities.

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