Returns a specifying the future value of an annuity based on periodic, fixed payments and a fixed interest rate.

Syntax

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

The FV function has these :

Part Description
rate Required. Double specifying interest rate per period. For example, if you get a car loan at an annual percentage rate (APR) of 10 percent and make monthly payments, the rate per period is 0.1/12, or 0.0083.
nper Required. specifying total number of payment periods in the annuity. For example, if you make monthly payments on a four-year car loan, your loan has a total of 4 * 12 (or 48) payment periods.
pmt Required. Double specifying payment to be made each period. Payments usually contain principal and interest that doesn't change over the life of the annuity.
pv Optional. specifying present value (or lump sum) of a series of future payments. For example, when you borrow money to buy a car, the loan amount is the present value to the lender of the monthly car payments you will make. If omitted, 0 is assumed.
type Optional. Variant specifying when payments are due. Use 0 if payments are due at the end of the payment period, or use 1 if payments are due at the beginning of the period. If omitted, 0 is assumed.

Remarks

An annuity is a series of fixed cash payments made over a period of time. An annuity can be a loan (such as a home mortgage) or an investment (such as a monthly savings plan).

The rate and nper must be calculated using payment periods expressed in the same units. For example, if rate is calculated using months, nper must also be calculated using months.

For all arguments, cash paid out (such as deposits to savings) is represented by negative numbers; cash received (such as dividend checks) is represented by positive numbers.

Example

This example uses the FV function to return the future value of an investment given the percentage rate that accrues per period ( 

APR / 12
), the total number of payments ( 
TotPmts
), the payment ( 
Payment
), the current value of the investment ( 
PVal
), and a number that indicates whether the payment is made at the beginning or end of the payment period ( 
PayType
). Note that because 
Payment
represents cash paid out, it's a negative number. 
Dim Fmt, Payment, APR, TotPmts, PayType, PVal, FVal Const ENDPERIOD = 0, BEGINPERIOD = 1 ' When payments are made. Fmt = "###,###,##0.00" ' Define money format. Payment = InputBox("How much do you plan to save each month?") APR = InputBox("Enter the expected interest annual percentage rate.") If APR > 1 Then APR = APR / 100 ' Ensure proper form. TotPmts = InputBox("For how many months do you expect to save?") PayType = MsgBox("Do you make payments at the end of month?", vbYesNo) If PayType = vbNo Then PayType = BEGINPERIOD Else PayType = ENDPERIOD PVal = InputBox("How much is in this savings account now?") FVal = FV(APR / 12, TotPmts, -Payment, -PVal, PayType) MsgBox "Your savings will be worth " & Format(FVal, Fmt) & "."