# 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.