The FV function in Google Sheets is designed to compute the future value of an investment based on regular, evenly spaced payments and a fixed interest rate. This function is particularly useful for individuals planning for retirement, saving for larger purchases, or managing finances involving consistent cash flows.

Syntax

FV(rate, nper, pmt, [pv], [type])

• rate: The interest rate for each period.
• nper: The total number of payment periods in the investment.
• pmt: The amount to be paid in each period (optional).
• pv: The present value or the total amount that a series of future payments is worth now (optional).
• type: Indicates whether payments are made at the beginning or end of the period (0 for end, 1 for beginning; optional).

Example #1

=FV(0.05, 10, -200)

This function calculates the future value of an investment where you make annual payments of $200 over 10 years with a 5% interest rate. The result is $2,583.68.

Example #2

=FV(0.03, 15, -100)

This computes the future value of an annuity with annual payments of $100, at an interest rate of 3%, over 15 years, yielding a future value of $2,045.72.

Example #3

=FV(0.04, 20, -150, -2500)

This calculates the future value when you make annual payments of $150 for 20 years at a 4% interest rate, with an additional present value of $2,500, resulting in $6,454.94.

Error handling

• NUM! This error occurs when the parameters provided would result in an invalid calculation, such as negative payments without a present value.
• VALUE! This error indicates that the input provided to the function is of an incorrect type, such as text instead of a number.
• DIV/0! This error may arise if the rate is set to zero and the number of periods is also zero, leading to incongruity in calculations.

Conclusion

In summary, the FV function is a powerful tool for financial forecasting in Google Sheets. By providing an easy way to calculate future values of investments with periodic payments, it assists users in making informed financial decisions. Mastering this function can significantly enhance your financial planning capabilities.