How to Use FV Function in Excel



1st Step : To Know Future Value of Investment

Without knowing future value of investment, you can not understand the FV Function in excel. Actually, excel's FV Formula automates the calculation of future value of investment. If you want to learn it, you can learn at here.

2nd Step : Write Few Important Information

FV Function is used on the basis of data. In this data, you should write Rate, Nper, Pmt, PV and type.

Rate = Rate of Interest

Nper = The number of years of your investment. If you invest your money for 10 years, 10 years will be Nper

Pmt = Period deposit for investment. Suppose, you deposit Rs. 1000 in your bank account every year for 10 years.

PV = Your initial investment in the project.

Type = If you pay at the beginning of the period, write 1 and if you pay at the end of the period write 0. Default will be 1.

3rd Step : Apply the Function

You can apply the function by using financial function FV. Just go to insert in ms excel, then go to function and then choose financial. After this click FV. You will see a pop up window. Write all above information. If you invest only initial amount, then you write Pmt as 0. After click ok, you will find the result in your excel cell.

Vinod Kumar

Educator

Prof. Vinod Kumar is an Indian Educator, Motivational Speaker, Naturopathic Practitioner and Entrepreneur . He is the founder of Svtuition... read more »

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