## How to use the PDURATION function

**What is the PDURATION function?**

The PDURATION function calculates how many periods required by an investment to reach a given amount based on a percentage rate. PDURATION stands for price duration.

**What is an investment?**

An investment is an asset or business acquired with the goal of generating income or appreciation, the purpose is to grow the money over time.

**What are periods?**

A payment period is the length of time between payments made on a loan or investment. For example, a loan with monthly payments the payment period would be one month. A loan with quarterly payments the payment period would be three months.

**What is present value?**

The present value is the initial amount that will earn interest/dividend.

**What is future value?**

The compounded amount after the calculated periods based on the given rate. It measures what a current capital (present value) amount will be worth at a designated future date.

**Related functions**

Function | Description |
---|---|

RATE(nper, pmt, pv, [fv], [type]) | Returns the interest rate per period of an annuity |

PV(rate, nper, pmt, [fv], [type]) | Returns the present value of an investment. |

FV(rate, nper, pmt, [pv], [type]) | Returns the future value of an investment. |

PDURATION(rate, pv, fv) | Returns the periods needed for an investment to reach a future value. |

### PDURATION Function Syntax

PDURATION(*Rate, Pv, Fv*)

### PDURATION Function Arguments

Rate |
Required. Rate is the interest rate per period. |

Pv |
Required. Pv is the present amount of the investment. |

Fv |
Required. Fv is the desired future amount of the investment. |

### PDURATION function example

Formula in cell C7:

### PDURATION not working

The PDURATION function returns

- #VALUE error if invalid data types are used.
- #NUM error if argument values are invalid.

Positive values are required as arguments.

### How is the PDURATION function calculated?

The following formula calculates the exact same thing as the PDURATION function.

PDURATION = (log(Fv)-log(Pv))/log(1+r)

Fv - Future value

Pv - Present value

r - rate

Formula in cell C5:

The LOG function calculates the logarithm of a number to a specific base.

Function syntax: LOG(number, [base])

### Functions in 'Financial' category

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

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