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Plug your numbers in the boxes below, press the Build it! button, and we'll build your formula. We'll even give you the answer.

When you're done, you can paste the formula into your own Excel worksheet.

Interest rate:
(such as 2)

Length of investment:
(in years, such as 5)

Present value:
(such as 10000)


This is your formula:

And here's your answer:

Try another?

FV function, scenario #2: Use it to find the future value of a lump sum

Calculates the future value for a lump sum investment, assuming a constant interest rate.

For example, you've invested $10,000 in a money market fund. You expect an average return of 2%, with interest paid monthly. The investment's future value after 5 years will be $11,050.79.

Syntax FV(rate, nper, , pv, [type])

Tip Wondering why there's no pmt argument in the example above? That's because this is a lump sum, and you won't be making payments. This means you skip adding a value for pmt. But you do need to include a comma in its place so Excel knows you've deliberately left pmt out.

Why is [type] in square brackets? The brackets mean it's optional. If you skip this argument, 0 is assumed, which means interest is paid at the end of each period.

Example =FV(2%/12,5*12, , 10000)

The FV function has the following arguments when you use FV for a lump sum: Rate, Nper, and Pv are required. Enter a comma in place of the pmt argument before pv.

Rate (Required) The interest rate for the investment. For monthly interest income, divide this by 12.

Nper (Required) The total number of interest earning periods. For monthly interest income, multiply this by 12.

, (Required) Enter a comma followed by nothing.

Pv (Required) The present value; in other words, the lump sum you initially invest and will earn interest on.

Type (Optional) The number 0 (zero) means the interest income is received at the end of each period; 1 means income is received at the beginning.


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