{"id":7333,"date":"2017-11-17T13:56:30","date_gmt":"2017-11-17T12:56:30","guid":{"rendered":"https:\/\/www.myexcelonline.com\/?p=7333"},"modified":"2024-04-13T22:52:47","modified_gmt":"2024-04-13T20:52:47","slug":"calculate-compound-interest-excels-fv-formula","status":"publish","type":"post","link":"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/calculate-compound-interest-excels-fv-formula\/","title":{"rendered":"Calculate the Compound Interest with Excel&#8217;s FV Formula"},"content":{"rendered":"<p><em><strong>What does it do?<\/strong><\/em><\/p>\n<p>Calculates the compound interest<\/p>\n<p><em><strong>Formula breakdown:<\/strong><\/em><\/p>\n<p>=FV(<span style=\"color: #0000ff\">rate<\/span>, <span style=\"color: #ff6600\">nper<\/span>, <span style=\"color: #339966\">pmt<\/span>, <span style=\"color: #ff0000\">[pv]<\/span>)<\/p>\n<p><em><strong>What it means:<\/strong><\/em><\/p>\n<p>=FV(<span style=\"color: #0000ff\">interest rate<\/span>, <span style=\"color: #ff6600\">number of periods<\/span>, <span style=\"color: #339966\">periodic payment<\/span>, <span style=\"color: #ff0000\">initial amount<\/span>)<\/p>\n<hr \/>\n<p>Say that you turn 18 years today (CONGRATS!) and you find out that your parents deposited an amount with their bank when you were born.<\/p>\n<p>Now that you are 18 years old you can collect this money and go spend it all in one day!<\/p>\n<p><strong>How much would be available for you to spend?<\/strong><\/p>\n<p>Thankfully there is an easy way to calculate this with Excel&#8217;s\u00a0<strong><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/nper-function\/\" target=\"_blank\" rel=\"noopener\">FV formula!<\/a> FV\u00a0<\/strong>stands for\u00a0<strong>Future Value.<\/strong><\/p>\n<p>The future value (FV) is the value of a current asset at a specified date in the future based on an assumed rate of growth over time.<br \/>\n<iframe src=\"https:\/\/www.youtube.com\/embed\/1SZISdX5QYw?rel=0 \" width=\"800\" height=\"400\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><span data-mce-type=\"bookmark\" style=\"width: 0px;overflow: hidden;line-height: 0\" class=\"mce_SELRES_start\">\ufeff<\/span><\/iframe><\/p>\n<p><a href=\"https:\/\/www.youtube.com\/c\/MyExcelOnlinecomtutorials?sub_confirmation=1\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img loading=\"lazy\" decoding=\"async\" class=\"alignmiddle wp-image-111468 size-full\" style=\"vertical-align: middle\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2019\/04\/1.yt_.png\" alt=\"\" title=\"\"><\/a><br \/>\nIn our example below, we have the table of values that we need to get the compound interest or Future Value from:<\/p>\n<p><em>(Change the NUMBER OF YEARS column to 18 to see the results on your 18th birthday)<\/em><\/p>\n<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-01.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" title=\"Calculate the Compound Interest with Excel&#039;s FV Formula\" class=\"alignnone size-full wp-image-7335\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-01.jpg\" alt=\"Calculate the Compound Interest with Excel&#039;s FV Formula\" width=\"621\" height=\"159\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-01.jpg 621w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-01-300x77.jpg 300w\" sizes=\"(max-width: 621px) 100vw, 621px\" \/><\/a><\/p>\n<p>I explain how you can do this below:<\/p>\n<div class=\"after-post-box\">\n<p class=\"line-two\"><a class=\"IRPP_minimalist icon-download button small\" href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA.xlsx\" target=\"_blank\" rel=\"noopener noreferrer\" data-leadbox=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA.xlsx\" data-leadbox-id=\"147284833f72a2:12f08263ab46dc\"><span class=\"ctaText px-3 text-capitalize\">Download excel workbook<i class=\"fa fa-download\"><\/i><\/span><span class=\"postTitle px-3\">COMPOUND-AVERAGE-FORMULA.xlsx<\/span><\/a><\/p>\n<p class=\"line-two\">\n<\/div>\n<p><span style=\"color: #ff0000\"><strong>STEP 1:<\/strong><\/span> We need to <strong>enter the <i>FV\u00a0<\/i>function in a blank cell<\/strong>:<\/p>\n<h2 style=\"text-align: center\"><span style=\"color: #0000ff\">=FV(<\/span><\/h2>\n<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-02.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" title=\"Calculate the Compound Interest with Excel&#039;s FV Formula\" class=\"alignnone size-full wp-image-7336\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-02.jpg\" alt=\"Calculate the Compound Interest with Excel&#039;s FV Formula\" width=\"621\" height=\"165\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-02.jpg 621w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-02-300x80.jpg 300w\" sizes=\"(max-width: 621px) 100vw, 621px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #ff0000\"><strong>STEP 2:<\/strong><\/span>\u00a0The <b>FV\u00a0<\/b>arguments:<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_57_1 counter-flat ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li><a href=\"#\" class=\"scroll-to-download\">Free Practice Workbook<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/calculate-compound-interest-excels-fv-formula\/#rate\" title=\"rate\">rate<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/calculate-compound-interest-excels-fv-formula\/#nper\" title=\"nper\">nper<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/calculate-compound-interest-excels-fv-formula\/#pmt\" title=\"pmt\">pmt<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/calculate-compound-interest-excels-fv-formula\/#pv\" title=\"pv\">pv<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"rate\"><\/span><span style=\"color: #0000ff\"><em><strong>rate<\/strong><\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>What is the rate of the interest?<\/strong><\/p>\n<p><em>Select the cell containing the interest rate (make sure that this is in a percentage):<\/em><\/p>\n<h2 style=\"text-align: center\">=FV(<span style=\"color: #0000ff\">B9,<\/span><\/h2>\n<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-03.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" title=\"Calculate the Compound Interest with Excel&#039;s FV Formula\" class=\"alignnone size-full wp-image-7337\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-03.jpg\" alt=\"Calculate the Compound Interest with Excel&#039;s FV Formula\" width=\"626\" height=\"164\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-03.jpg 626w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-03-300x79.jpg 300w\" sizes=\"(max-width: 626px) 100vw, 626px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"nper\"><\/span><span style=\"color: #0000ff\"><em><strong>nper<\/strong><\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>How many periods?<\/strong><\/p>\n<p><em>Select the cell containing the number of years:<\/em><\/p>\n<h2 style=\"text-align: center\">=FV(B9,\u00a0<span style=\"color: #0000ff\">C9,<\/span><\/h2>\n<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-04.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" title=\"Calculate the Compound Interest with Excel&#039;s FV Formula\" class=\"alignnone size-full wp-image-7338\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-04.jpg\" alt=\"Calculate the Compound Interest with Excel&#039;s FV Formula\" width=\"623\" height=\"163\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-04.jpg 623w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-04-300x78.jpg 300w\" sizes=\"(max-width: 623px) 100vw, 623px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"pmt\"><\/span><span style=\"color: #0000ff\"><em><strong>pmt<\/strong><\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>What is the periodic payment?<\/strong><\/p>\n<p><em>We have no periodic payment, only an initial amount, so let us put in <strong>0<\/strong>:<\/em><\/p>\n<h2 style=\"text-align: center\">=FV(B9, C9,\u00a0<span style=\"color: #0000ff\">0,<\/span><\/h2>\n<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-05.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" title=\"Calculate the Compound Interest with Excel&#039;s FV Formula\" class=\"alignnone size-full wp-image-7339\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-05.jpg\" alt=\"Calculate the Compound Interest with Excel&#039;s FV Formula\" width=\"627\" height=\"167\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-05.jpg 627w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-05-300x80.jpg 300w\" sizes=\"(max-width: 627px) 100vw, 627px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"pv\"><\/span><span style=\"color: #0000ff\"><em><strong>pv<\/strong><\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>What is the initial amount?<\/strong><\/p>\n<p><em>PV stands for present value, the initial amount. We need to change this to a negative value by multiplying -1.<\/em><\/p>\n<p><em>The reason why we need this as a negative value as Excel treats this as &#8220;money out&#8221; for your investment.<\/em><\/p>\n<h2 style=\"text-align: center\">=FV(B9, C9, 0,\u00a0<span style=\"color: #0000ff\">A9 * -1)<\/span><\/h2>\n<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-06.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" title=\"Calculate the Compound Interest with Excel&#039;s FV Formula\" class=\"alignnone size-full wp-image-7340\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-06.jpg\" alt=\"Calculate the Compound Interest with Excel&#039;s FV Formula\" width=\"622\" height=\"167\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-06.jpg 622w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-06-300x81.jpg 300w\" sizes=\"(max-width: 622px) 100vw, 622px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>Apply the same formula to the rest of the cells by dragging the lower right corner downwards.<\/p>\n<p>You now have all of the compound interest results!\u00a0 GO OUT &amp; SPEND!<\/p>\n<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-07.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" title=\"Calculate the Compound Interest with Excel&#039;s FV Formula\" class=\"alignnone size-full wp-image-7341\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-07.jpg\" alt=\"Calculate the Compound Interest with Excel&#039;s FV Formula\" width=\"643\" height=\"192\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-07.jpg 643w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/10\/COMPOUND-AVERAGE-FORMULA-07-300x90.jpg 300w\" sizes=\"(max-width: 643px) 100vw, 643px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #0000ff\"><strong>Get the Compound Interest with Excel&#8217;s FV Formula<\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What does it do? Calculates the compound interest Formula breakdown: =FV(rate, nper, pmt, [pv]) What it means: =FV(interest rate, number of periods, periodic payment, initial amount) Say that you turn 18 years today (CONGRATS!) and you find out that your parents deposited an amount with their bank when you were born. Now that you are [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":17532,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cos_headline_score":0,"cos_seo_score":0,"cos_headline_text":"Calculate the Compound Interest with Excel's FV Formula","cos_headline_has_been_analyzed":false,"cos_last_analyzed_headline":[],"om_disable_all_campaigns":false},"categories":[3,319],"tags":[314,142,112],"acf":[],"_links":{"self":[{"href":"https:\/\/www.myexcelonline.com\/meo-staging\/wp-json\/wp\/v2\/posts\/7333"}],"collection":[{"href":"https:\/\/www.myexcelonline.com\/meo-staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myexcelonline.com\/meo-staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myexcelonline.com\/meo-staging\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myexcelonline.com\/meo-staging\/wp-json\/wp\/v2\/comments?post=7333"}],"version-history":[{"count":0,"href":"https:\/\/www.myexcelonline.com\/meo-staging\/wp-json\/wp\/v2\/posts\/7333\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.myexcelonline.com\/meo-staging\/wp-json\/wp\/v2\/media\/17532"}],"wp:attachment":[{"href":"https:\/\/www.myexcelonline.com\/meo-staging\/wp-json\/wp\/v2\/media?parent=7333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myexcelonline.com\/meo-staging\/wp-json\/wp\/v2\/categories?post=7333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myexcelonline.com\/meo-staging\/wp-json\/wp\/v2\/tags?post=7333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}