In this example, a $5000 payment is made each year for 25 years, with an interest rate of 7%. To calculate future value, the FV function is configured as follows like this in cell C7: with the following inputs:

rate - the value from cell C5, 7%. nper - the value from cell C6, 25. pmt - negative value from cell C4, -100000 pv - 0. type - 0, payment at end of period (regular annuity).

With this information, the FV function returns $316,245.19. Note payment is entered as a negative number, so the result is positive.

Annuity due

An annuity due is a repeating payment made at the beginning of each period, instead of at the end of each period. To calculate an annuity due with the FV function, set the type argument to 1: With type set to 1, FV returns $338,382.35.

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.