{"id":7487,"date":"2020-06-26T14:51:58","date_gmt":"2020-06-26T12:51:58","guid":{"rendered":"https:\/\/www.myexcelonline.com\/?p=7487"},"modified":"2024-05-14T20:49:11","modified_gmt":"2024-05-14T18:49:11","slug":"calculate-monthly-investment-excels-fv-formula","status":"publish","type":"post","link":"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/calculate-monthly-investment-excels-fv-formula\/","title":{"rendered":"Calculate your Monthly Investment with Excel&#8217;s FV Formula"},"content":{"rendered":"<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/free-microsoft-excel-online-course\/\" target=\"_blank\" rel=\"noopener\">Excel<\/a> Investment Calculator can calculate compound interest and provide the future value of an investment. It is a powerful tool used to determine the outcome of your investments.<\/p>\n<h3>You can determine how much your money will grow using Excel Investment Calculator.<\/h3>\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-monthly-investment-excels-fv-formula\/#What_is_Compound_Interest\" title=\"What is Compound Interest?\">What is Compound Interest?<\/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-monthly-investment-excels-fv-formula\/#Calculation_using_Mathematical_Formula\" title=\"Calculation using Mathematical Formula\">Calculation using Mathematical Formula<\/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-monthly-investment-excels-fv-formula\/#Calculation_using_Excels_FV_Formula\" title=\"Calculation using Excel&#8217;s FV Formula\">Calculation using Excel&#8217;s FV Formula<\/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-monthly-investment-excels-fv-formula\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_Compound_Interest\"><\/span><a id=\"what-is-compound-interest\"><\/a>What is Compound Interest?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Compound interest is often referred to as &#8220;interest on interest&#8221; i.e. you earn interest on both:<\/p>\n<ul>\n<li>Initial investment; and<\/li>\n<li>Previous period&#8217;s interest earned<\/li>\n<\/ul>\n<p>As opposed to simple interest, it is assumed that the interest earned is reinvested and in the future periods, you will be earning interest on both principal and reinvested interest (not just on principal amount). The longer you save, the more interest you will earn.<\/p>\n<p>For example, you deposit $100 for 2 years at a compound interest of 10%. In the first year, you will earn $100*0.10 i.e. $10 and in the second year, you will earn $100*0.10 + $10*0.10 i.e. 11. So, you will earn a total of $21 in interest rather than $20 as in the case of simple interest.<\/p>\n<p>Using <a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/excel-mirr-function\/\" target=\"_blank\" rel=\"noopener\">Excel Investment Calculator<\/a>, you can easily calculate different attributes of compound interest. Let&#8217;s see how it can be done!<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Calculation_using_Mathematical_Formula\"><\/span><strong><a id=\"calculate-using-mathematical-formula\"><\/a>Calculation using Mathematical Formula<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To calculate the future value of your investment, you need to know three factors:<\/p>\n<ul>\n<li>PV &#8211; Present Value of Investment<\/li>\n<li>i &#8211; Annual interest rate<\/li>\n<li>n &#8211; Compounding frequency<\/li>\n<li>t &#8211; no of periods<\/li>\n<\/ul>\n<p>Using these three factors, you can find out the future value of your <a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/effective-interest-rate\/\" target=\"_blank\" rel=\"noopener\">investment with<\/a> a certain compounded interest rate.<\/p>\n<h2 style=\"text-align: center\">=<span style=\"color: #0000ff\"> PV * (1 + i\/n)<sup>nt<\/sup><\/span><\/h2>\n<p>Let&#8217;s take an <a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/top-excel-formulas-function-examples-to-get-better-at-microsoft-excel\/\" target=\"_blank\" rel=\"noopener\">example to understand how this formula works in Excel<\/a>.<\/p>\n<p>Suppose you invest $4000 for a period of 8 years at a monthly compound interest of 5% and you want to know the value of the investment after 8 years.<\/p>\n<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.19.25-AM.png\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-18329\" title=\"Calculate your Monthly Investment with Excel's FV Formula\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.19.25-AM.png\" alt=\"Calculate your Monthly Investment with Excel's FV Formula\" width=\"371\" height=\"193\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.19.25-AM.png 371w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.19.25-AM-300x156.png 300w\" sizes=\"(max-width: 371px) 100vw, 371px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><strong><span style=\"color: #ff0000\">STEP 1:<\/span><\/strong> The Present Value of investment is provided in cell B3.<\/p>\n<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.21.14-AM.png\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-18330\" title=\"Calculate your Monthly Investment with Excel's FV Formula\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.21.14-AM.png\" alt=\"Calculate your Monthly Investment with Excel's FV Formula\" width=\"374\" height=\"288\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.21.14-AM.png 374w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.21.14-AM-300x231.png 300w\" sizes=\"(max-width: 374px) 100vw, 374px\" \/><\/a><\/p>\n<p><strong><span style=\"color: #ff0000\">STEP 2:<\/span><\/strong> The annual interest rate is in cell B4 and the interest is compounded monthly so the interest will be divided by the compounding frequency 12 (in cell B6).<\/p>\n<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.22.24-AM.png\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-18331\" title=\"Calculate your Monthly Investment with Excel's FV Formula\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.22.24-AM.png\" alt=\"Calculate your Monthly Investment with Excel's FV Formula\" width=\"374\" height=\"288\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.22.24-AM.png 374w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.22.24-AM-300x231.png 300w\" sizes=\"(max-width: 374px) 100vw, 374px\" \/><\/a><\/p>\n<p><strong><span style=\"color: #ff0000\">STEP 3: <\/span><\/strong>Since compounding is done monthly, we need to multiple the no of years (cell B6) with compounding frequency (cell B5).<\/p>\n<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.23.08-AM.png\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-18332\" title=\"Calculate your Monthly Investment with Excel's FV Formula\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.23.08-AM.png\" alt=\"Calculate your Monthly Investment with Excel's FV Formula\" width=\"437\" height=\"310\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.23.08-AM.png 437w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.23.08-AM-300x213.png 300w\" sizes=\"(max-width: 437px) 100vw, 437px\" \/><\/a><\/p>\n<p>Once, you have provided Excel <a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/nper-function\/\" target=\"_blank\" rel=\"noopener\">Investment Calculator with<\/a> all the necessary inputs it will calculate the FV of the investment for you which is $5,962 in this case.<\/p>\n<p>This is how <a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/opportunity-cost-calculator\/\" target=\"_blank\" rel=\"noopener\">your Monthly Investment Calculator Excel<\/a> will look like:<\/p>\n<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.24.31-AM.png\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-18333\" title=\"Calculate your Monthly Investment with Excel's FV Formula\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.24.31-AM.png\" alt=\"Calculate your Monthly Investment with Excel's FV Formula\" width=\"352\" height=\"234\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.24.31-AM.png 352w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.24.31-AM-300x199.png 300w\" sizes=\"(max-width: 352px) 100vw, 352px\" \/><\/a><\/p>\n<p>If you need to calculate the future value of an interest when compounding frequency is quarterly, you can simply change the value in cell B6 to 4.<\/p>\n<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.25.06-AM.png\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-18334\" title=\"Calculate your Monthly Investment with Excel's FV Formula\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.25.06-AM.png\" alt=\"Calculate your Monthly Investment with Excel's FV Formula\" width=\"374\" height=\"292\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.25.06-AM.png 374w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/06\/Screenshot-2020-06-29-at-11.25.06-AM-300x234.png 300w\" sizes=\"(max-width: 374px) 100vw, 374px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Calculation_using_Excels_FV_Formula\"><\/span><strong><a id=\"calculate-using-excels-fv-formula\"><\/a>Calculation using Excel&#8217;s FV Formula<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Computing the <a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/calculate-compound-interest-excels-fv-formula\/\" target=\"_blank\" rel=\"noopener noreferrer\">compound interest<\/a> of an initial investment is easy for a fixed number of years.\u00a0 But let&#8217;s add an additional challenge.<\/p>\n<p>What if you are also putting in <strong>monthly contributions<\/strong> to your investment? Now that&#8217;s a lot more challenging to compute now!<\/p>\n<p><strong>How much would be available for you at the end of your investment?<\/strong><\/p>\n<p>Thankfully there is an easy way to calculate this with Excel Investment Calculator &#8211; <strong>The<\/strong> <strong>FV formula! FV\u00a0<\/strong>stands for\u00a0<strong>Future Value.<\/strong><\/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 style=\"color: #800080\">[type]<\/span><\/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<ul>\n<li><span style=\"color: #0000ff\">rate\u00a0<span style=\"color: #000000\">&#8211; Interest rate per period<\/span><\/span><\/li>\n<li><span style=\"color: #ff6600\">nper <span style=\"color: #0000ff\"><span style=\"color: #000000\">&#8211; Total no of compounding periods<\/span><\/span><\/span><\/li>\n<li><span style=\"color: #339966\">pmt <span style=\"color: #ff6600\"><span style=\"color: #0000ff\"><span style=\"color: #000000\">&#8211; Annuity amount per period. <em>If this is omitted, make sure you provide Excel with a PV.\u00a0<\/em><\/span><\/span><\/span><\/span><\/li>\n<li><span style=\"color: #ff0000\">[pv] <span style=\"color: #339966\"><span style=\"color: #ff6600\"><span style=\"color: #0000ff\"><span style=\"color: #000000\">&#8211; Present value of the investment. <em>This is an optional argument.\u00a0<\/em><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span style=\"color: #ff0000\"><span style=\"color: #800080\"><span style=\"color: #339966\"><span style=\"color: #ff6600\"><span style=\"color: #0000ff\"><span style=\"color: #000000\">[type] &#8211; It is should be 0 if the annuity is received at the end of the compounding period and 1 if it received at the beginning of the compounding period. <em>This is an optional argument and by default, its value is set to 0.<\/em><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<p>In our example below, we have the table of values that we need to get the compound interest or Future Value from using Excel Investment Calculator:<\/p>\n<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-01.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-7490\" title=\"Calculate your Monthly Investment with Excel's FV Formula\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-01.jpg\" alt=\"Calculate your Monthly Investment with Excel's FV Formula\" width=\"642\" height=\"152\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-01.jpg 642w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-01-300x71.jpg 300w\" sizes=\"(max-width: 642px) 100vw, 642px\" \/><\/a><\/p>\n<p>There are two important concepts we need to use since we are using monthly contributions:<\/p>\n<ul>\n<li>Since our interest rate is the annual rate, we will have to <strong>divide it by 12<\/strong> to make it monthly<\/li>\n<li>We will need to convert our number of years into a number of months by <strong>multiplying it by 12<\/strong><\/li>\n<\/ul>\n\n<p>I explain how you can do this below:<\/p>\n<div class=\"after-post-box\">\n<p><iframe src=\"https:\/\/www.youtube.com\/embed\/z4QaZMqyOFo?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><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><\/p>\n<p class=\"line-two\"><a class=\"IRPP_minimalist icon-download button small\" href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA.xlsx\" target=\"_blank\" rel=\"noopener noreferrer\" data-leadbox=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-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\">FUTURE-VALUE-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 <a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/find-blank-cells-in-excel-with-a-color\/\" target=\"_blank\" rel=\"noopener\">blank cell<\/a><\/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\/12\/FUTURE-VALUE-FORMULA-02.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-7491\" title=\"Calculate your Monthly Investment with Excel's FV Formula\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-02.jpg\" alt=\"Calculate your Monthly Investment with Excel's FV Formula\" width=\"703\" height=\"154\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-02.jpg 703w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-02-300x66.jpg 300w\" sizes=\"(max-width: 703px) 100vw, 703px\" \/><\/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<h3><span style=\"color: #0000ff\"><em><strong>rate<\/strong><\/em><\/span><\/h3>\n<p><strong>What is the rate of interest?<\/strong><\/p>\n<p><em>Select the cell containing the interest rate and divide it by 12 to get the monthly interest rate (make sure that this is in a percentage):<\/em><\/p>\n<h2 style=\"text-align: center\">=FV(<span style=\"color: #0000ff\">B9\/12,<\/span><\/h2>\n<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-03.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-7492\" title=\"Calculate your Monthly Investment with Excel's FV Formula\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-03.jpg\" alt=\"Calculate your Monthly Investment with Excel's FV Formula\" width=\"702\" height=\"153\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-03.jpg 702w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-03-300x65.jpg 300w\" sizes=\"(max-width: 702px) 100vw, 702px\" \/><\/a><\/p>\n<h3><span style=\"color: #0000ff\"><em><strong>nper<\/strong><\/em><\/span><\/h3>\n<p><strong>How many periods?<\/strong><\/p>\n<p><em>Select the <a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/format-cells-special-numbers-excel\/\" target=\"_blank\" rel=\"noopener\">cell containing the number<\/a> of years and multiply it by 12 to get the number of months:<\/em><\/p>\n<h2 style=\"text-align: center\">=FV(B9\/12,\u00a0<span style=\"color: #0000ff\">C9*12,<\/span><\/h2>\n<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-04.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-7493\" title=\"Calculate your Monthly Investment with Excel's FV Formula\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-04.jpg\" alt=\"Calculate your Monthly Investment with Excel's FV Formula\" width=\"702\" height=\"150\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-04.jpg 702w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-04-300x64.jpg 300w\" sizes=\"(max-width: 702px) 100vw, 702px\" \/><\/a><\/p>\n<h3><span style=\"color: #0000ff\"><em><strong>pmt<\/strong><\/em><\/span><\/h3>\n<p><strong>What is the periodic payment?<\/strong><\/p>\n<p><em>Select the cell that contains your monthly contribution (this is your periodic payment):<\/em><\/p>\n<h2 style=\"text-align: center\">=FV(B9\/12, C9*12,\u00a0<span style=\"color: #0000ff\">D9,<\/span><\/h2>\n<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-05.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-7494\" title=\"Calculate your Monthly Investment with Excel's FV Formula\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-05.jpg\" alt=\"Calculate your Monthly Investment with Excel's FV Formula\" width=\"704\" height=\"153\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-05.jpg 704w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-05-300x65.jpg 300w\" sizes=\"(max-width: 704px) 100vw, 704px\" \/><\/a><\/p>\n<h3><span style=\"color: #0000ff\"><em><strong>pv<\/strong><\/em><\/span><\/h3>\n<p><strong>What is the initial amount?<\/strong><\/p>\n<p><em>PV stands for present value, the initial amount. Multiply the entire result by -1.<\/em><\/p>\n<h2 style=\"text-align: center\">=FV(B9\/12, C9*12, D9,\u00a0<span style=\"color: #0000ff\">A9) * -1<\/span><\/h2>\n<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-06.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-7495\" title=\"Calculate your Monthly Investment with Excel's FV Formula\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-06.jpg\" alt=\"Calculate your Monthly Investment with Excel's FV Formula\" width=\"726\" height=\"153\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-06.jpg 726w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-06-300x63.jpg 300w\" sizes=\"(max-width: 726px) 100vw, 726px\" \/><\/a><\/p>\n<p>Apply <a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/how-to-apply-formula-to-entire-column\/\" target=\"_blank\" rel=\"noopener\">the same formula<\/a> 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 in the <a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/annualized\/\" target=\"_blank\" rel=\"noopener\">investment calculator<\/a> Excel!<\/p>\n<p><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-07.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-7496 size-full\" title=\"Calculate your Monthly Investment with Excel's FV Formula\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-07.jpg\" alt=\"Calculate your Monthly Investment with Excel's FV Formula\" width=\"664\" height=\"174\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-07.jpg 664w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2017\/12\/FUTURE-VALUE-FORMULA-07-300x79.jpg 300w\" sizes=\"(max-width: 664px) 100vw, 664px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><a id=\"conclusion\"><\/a>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In this article, you have understood the concept of compounding i.e. reinvesting the interest earned on investments. Using Excel Investment Calculator, you can compute the future value of your investment by either using the mathematical formula or the FV <a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/top-excel-formulas-function-examples-to-get-better-at-microsoft-excel\/\" target=\"_blank\" rel=\"noopener\">formula<\/a>.<\/p>\n<p><strong>Further Learning:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/descriptive-statistics-in-excel\/\" target=\"_blank\" rel=\"noopener\">A Comprehensive Guide to Descriptive Statistics in Excel<\/a><\/li>\n<li><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/how-to-master-excel-formulas\/\" target=\"_blank\" rel=\"noopener\">How to Master Excel Formulas &amp; The Ultimate Guide<\/a><\/li>\n<li><a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/blog\/cagr-in-excel\/\" target=\"_blank\" rel=\"noopener\">2 Useful Methods for Calculating CAGR in Excel<\/a><\/li>\n<\/ul>\n<p><strong>Make sure to download our FREE PDF on the<a href=\"https:\/\/app.monstercampaigns.com\/c\/czseo0viyrmspcx5ndve\/\" target=\"_blank\" rel=\"noopener noreferrer\"> 333 Excel keyboard Shortcuts here<\/a>:<\/strong><\/p>\n<p><a href=\"https:\/\/app.monstercampaigns.com\/c\/czseo0viyrmspcx5ndve\/\" target=\"_blank\" rel=\"nofollow noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-14329 size-medium\" src=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/03\/333coffeMockups-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/03\/333coffeMockups-300x200.jpg 300w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/03\/333coffeMockups-1024x682.jpg 1024w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/03\/333coffeMockups-768x512.jpg 768w, https:\/\/www.myexcelonline.com\/meo-staging\/wp-content\/uploads\/2020\/03\/333coffeMockups.jpg 1340w\" sizes=\"(max-width: 300px) 100vw, 300px\" title=\"\"><\/a><\/p>\n<p><strong>You can learn more about how to use Excel by viewing our FREE Excel webinar training on <a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/100-43.html\" target=\"_blank\" rel=\"noopener noreferrer\">Formulas<\/a>, <a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/100-5.html\" target=\"_blank\" rel=\"noopener noreferrer\">Pivot Tables<\/a>, and <a href=\"https:\/\/www.myexcelonline.com\/meo-staging\/100-39.html\" target=\"_blank\" rel=\"noopener noreferrer\">Macros &amp; VBA<\/a>!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Excel Investment Calculator can calculate compound interest and provide the future value of an investment. It is a powerful tool used to determine the outcome of your investments. You can determine how much your money will grow using Excel Investment Calculator. What is Compound Interest? Compound interest is often referred to as &#8220;interest on interest&#8221; [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":17166,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cos_headline_score":0,"cos_seo_score":0,"cos_headline_text":"Calculate your Monthly Investment with Excel's FV Formula","cos_headline_has_been_analyzed":false,"cos_last_analyzed_headline":[],"om_disable_all_campaigns":false},"categories":[3,319,16],"tags":[327,328],"acf":[],"_links":{"self":[{"href":"https:\/\/www.myexcelonline.com\/meo-staging\/wp-json\/wp\/v2\/posts\/7487"}],"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=7487"}],"version-history":[{"count":0,"href":"https:\/\/www.myexcelonline.com\/meo-staging\/wp-json\/wp\/v2\/posts\/7487\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.myexcelonline.com\/meo-staging\/wp-json\/wp\/v2\/media\/17166"}],"wp:attachment":[{"href":"https:\/\/www.myexcelonline.com\/meo-staging\/wp-json\/wp\/v2\/media?parent=7487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myexcelonline.com\/meo-staging\/wp-json\/wp\/v2\/categories?post=7487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myexcelonline.com\/meo-staging\/wp-json\/wp\/v2\/tags?post=7487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}