For this example, we want to find the original amount of a loan with a 4.5% interest rate, and a payment of $93.22, and a term of 60 months. The PV function is configured as follows: rate - The interest rate per period. We divide the value in C5 by 12 since 4.5% represents annual interest: nper - the number of periods comes from cell C7, 60 monthly periods in a 5 year loan. pmt - The payment made each period. This is the known amount $93.22, which comes from cell C6. By convention, payments in PV are input as negative values. With these inputs, the PV function returns 5,000.226, which is displayed as $5000 using number formatting. The actual loan amount is $5000 even, but the monthly payment is rounded to the nearest penny causes FV to return a slightly different result.

Dave Bruns

Hi - I’m Dave Bruns, and I run Exceljet with my wife, Lisa. Our goal is to help you work faster in Excel. We create short videos, and clear examples of formulas, functions, pivot tables, conditional formatting, and charts.