## How to use the FV function

*Article updated on April 14, 2018*

The FV function returns the future value of an investment based on a constant interest rate.

You can use FV with either periodic, constant payments, or a single lump sum payment.

Formula in cell B3:

The picture above shows a table that calculates the future value of $1000 with 10% interest rate for 5 years.

### Excel Function Syntax

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

### Arguments

rate |
Required. The interest rate you want to use. |

nper |
Required. The total number of payments. |

pmt |
Required. The payment made each period. |

[pv] |
Optional. The present value. |

[type] |
Optional. When payments are due. 0 (zero) is the default value. 0 - At the end of the period. 1 - At the beginning of the period. |

### Example 2

The FV function calculates the future value if you save $1000 each year with an interest rate of 10% for five years.

### Functions in 'Financial'

The FV function function is one of many functions in the 'Financial' category.