Calculating the Future Value of a Single Cash Flow in Excel

ID: Q30970

The information in this article applies to:

Microsoft Excel for Windows, versions 2.x, 3.x, 4.x, 5.0
Microsoft Excel for Windows 95, version 7.0
Microsoft Excel for the Macintosh, versions 2.x, 3.0, 4.0

The FV function in Microsoft Excel returns the future value of an investment based on periodic, constant payments and a constant interest rate.

The FV function can also be used to calculate the future value of a single lump sum payment. To do this, enter the lump sum payment amount as the present value (PV) and enter the payment amount as zero. Entering a zero as the payment amount tells Excel there is no constant stream of payments.

For example, suppose that you will invest $1,000 today at an interest rate of 12 percent, and you would like to know what the investment will be worth at the end of five years.

The FV formula is entered as follows:


   =FV(12%,5,0,-1000,0)

REFERENCES

"Microsoft Excel Functions and Macros," versions 2.x, page 53

"Microsoft Excel Function Reference," version 3.0, page 98

Additional query words: 2.0 2.00 2.01 2.1 2.10 2.2 2.20 2.21 3.0 4.00


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Last Reviewed: March 11, 1999