Financialintermediate
Calculate a fixed loan payment with PMT
=PMT(B1/12,B2*12,-B3)
Excel how-to guide
How to fv future value in Excel
Model retirement savings, compound interest on a deposit, or the future balance of a recurring investment plan.
Step-by-step instructions
How to fv future value — 3 steps
1
Divide the annual rate by 12 to get the monthly compounding rate.
2
Multiply the investment horizon in years by 12 for total months.
3
Enter the monthly contribution as a negative number — FV treats payments as cash outflows, returning a positive future balance.
Example data
Worked example
| Parameter | Value |
|---|---|
| Annual Rate | 7% |
| Years | 20 |
| Monthly Contribution | 500 |
| Future Value | =FV(7%/12,20*12,-500) |
Common mistakes
Errors to watch out for
FV returns a negative number
FV returns a negative result when payments are positive. Negate your payment input (-B3) or wrap the result in ABS() to get a positive future balance.
Rate and periods are mismatched
Use the same time unit for rate and nper. Monthly contributions need a monthly rate (annual/12) and total months (years×12).
FAQ
Frequently asked questions
How do I model a lump-sum investment with no ongoing contributions?
Set pmt to 0 and use the pv argument — =FV(rate, nper, 0, -lump_sum) — to grow a one-time deposit at compound interest.
Describe your exact spreadsheet problem — get the formula in seconds.
Open AI Formula Generator — FreeRelated how-to guides
Continue learning.
Financialadvanced
Calculate net present value with NPV
=NPV(B1,B3:B7)+B2