PV

The PV function returns the present value of a loan or an investment, when using constant and regular periodic payments.

Examples of PV are calculations of for mortgage or other loans, or future values towards investment goals.

Syntax

PV(rate, nperiods, pmt, [fv], [type])

The PV function syntax has the following arguments:

rate	Required The interest rate per period. To use 7%, use the value 0.07.
nperiods	Required Number of payment periods
pmt	Required The payment for each period
fv	Optional The future value, or a cash balance after the last payment. Defaults to 0.
type	Optional Due date of the payment. 0 End of the period 1 Beginning of the period Default is 0.

Notes

• Be consistent with the units for rate and nperiods arguments. If you make monthly payments on a two-year loan at an annual interest rate of 7%, use the rate calculation of 0.07/12 and nperiods calculation of 2*12. For annual payments on the same loan, use the rate of 0.07 and nperiods of 2.

Examples

PV(.1,5,12000)

The annual payment of $12,000 towards an investment, over 5 years, with an annual interest rate of 10% has a present value of - $45,489.44.

PV(.1/4,5*4,3000)

The quarterly payment of $3,000 towards an investment, over 5 years, with an annual interest rate of 10% has a present value of - $46,767.49.

PV(.1/12,5*12,1000)

The monthly payment of $1,000 towards an investment, over 5 years, with an annual interest rate of 10%, has a present value of -$47,065.37.