NPER( ) function
Returns the number of periods required to pay off a loan.
Syntax
NPER(rate, payment, amount <,type>)
Parameters
| Name | Type | Description |
|---|---|---|
| rate | numeric |
The interest rate per period. |
| payment | numeric |
The payment per period. |
| amount | numeric |
The principal amount of the loan. |
|
type optional |
numeric |
The timing of payments:
If omitted, the default value of 0 is used. |
Output
Numeric.
Examples
Basic examples
Returns 300.00, the number of months required to pay off a $275,000 loan at 6.5% per annum, with payments of $1,856.82 due at the end of each month:
NPER(0.065/12, 1856.82, 275000, 0)
Returns 252.81, the number of months required to pay off the same loan, with payments of $2,000 due at the end of each month:
NPER(0.065/12, 2000, 275000, 0)
Returns 249.92, the number of months required to pay off the same loan, with payments of $2,000 due at the beginning of each month:
NPER(0.065/12, 2000, 275000, 1)
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) |
Annuity formulas
The formula for calculating the present value of an ordinary annuity (payment at the end of a period):
The formula for calculating the future value of an ordinary annuity (payment at the end of a period):
