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# PV

> Use the Sigma PV function to return the present value of a loan or an investment, when using constant and regular periodic payments.

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.

**PV** is part of the set of financial functions that Sigma supports.

## Syntax

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

The **PV** function syntax has the following arguments:

<dl>
  <dt />

  <dt>
    rate
  </dt>

  <dd>
    Required
  </dd>

  <dd>
    The interest rate per period.
  </dd>

  <dd>
    To use 7%, use the value 0.07.
  </dd>

  <dt>
    nperiods
  </dt>

  <dd>
    Required
  </dd>

  <dd>
    Number of payment periods
  </dd>

  <dt>
    pmt
  </dt>

  <dd>
    Required
  </dd>

  <dd>
    The payment for each period
  </dd>

  <dt>
    fv
  </dt>

  <dd>
    Optional
  </dd>

  <dd>
    The future value, or a cash balance after the last payment.
  </dd>

  <dd>
    Defaults to 0.
  </dd>

  <dt>
    type
  </dt>

  <dd>
    Optional
  </dd>

  <dd>
    Due date of the payment.

    <dl><dt>0</dt><dd>End of the period</dd><dt>1</dt><dd>Beginning of the period</dd></dl>
  </dd>

  <dd>
    Default is 0.
  </dd>
</dl>

## 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.

## Related resources

* [Pmt](/docs/pmt)
* [FV](/docs/fv)
* [NPer](/docs/nper)
* <a href="https://support.microsoft.com/en-us/office/pv-function-23879d31-0e02-4321-be01-da16e8168cbd" target="_blank" rel="noopener noreferrer">
    PV function in Microsoft documentation
  </a>