FVANNUITY( ) function

Returns the future value of a series of payments calculated using a constant interest rate. Future value is the sum of the payments plus the accumulated compound interest.

Syntax

FVANNUITY(rate, periods, payment <,type>)

Parameters

Name	Type	Description
rate	numeric	The interest rate per period.
periods	numeric	The total number of payment periods.
payment	numeric	The payment per period. The payment amount must remain constant over the term of the annuity.
type optional	numeric	The timing of payments: 0 – payment at the end of a period 1 – payment at the beginning of a period If omitted, the default value of 0 is used.

Note

You must use consistent time periods when specifying rate, periods, and payment to ensure that you are specifying interest rate per period.

For example:

for a monthly payment on a two-year loan or investment with interest of 5% per annum, specify 0.05/12 for rate and 2 * 12 for periods
for an annual payment on the same loan or investment, specify 0.05 for rate and 2 for periods

Output

Numeric. The result is calculated to two decimal places.

Examples

Basic examples

Monthly payments

Returns 27243.20, the future value of $1,000 paid at the beginning of each month for 2 years at 1% per month, compounded monthly:

FVANNUITY(0.01, 2*12, 1000, 1)

Returns 12809.33, the future value of the same annuity after the first year:

FVANNUITY(0.01, 12, 1000, 1)

Annual payments

Returns 25440.00, the future value of $12,000 paid at the end of each year for 2 years at 12% per annum, compounded annually:

FVANNUITY(0.12, 2, 12000, 0)

Advanced examples

Annuity calculations

Annuity calculations involve four variables:

present value, or future value $21,243.39 and $ 26,973.46 in the examples below
payment amount per period $1,000.00 in the examples below
interest rate per period 1% per month in the examples below
number of periods 24 months in the examples below

If you know the value of three of the variables, you can use an Analytics function to calculate the fourth.

I want to find:	Analytics function to use:
Present value	PVANNUITY( ) Returns 21243.39: PVANNUITY(0.01, 24, 1000)
Future value	FVANNUITY( ) Returns 26973.46: FVANNUITY(0.01, 24, 1000)
Payment amount per period	PMT( ) Returns 1000: PMT(0.01, 24, 21243.39)
Interest rate per period	RATE( ) Returns 0.00999999 (1%): RATE(24, 1000, 21243.39)
Number of periods	NPER( ) Returns 24.00: NPER(0.01, 1000, 21243.39)