# FV

The FV function returns the future value of an investment.

Use the FV function to calculate the future value of an investment, assuming periodic, constant payments with a constant interest rate. You can also use it for the future value of single lump sum payment.

FV is part of the set of financial functions that Sigma supports.

## Syntax

`FV(rate, nperiods, pmt, [pv], [type])`
rate
The interest rate per period.
nperiods
The total number of payment periods.
pmt
If this is a deposit into savings or similar investment, the value must be negative. For cash received, such as income or dividends, payment value must be positive.
pv
Optional.
The present value of future payments. If omitted, assumed to be zero. Must be entered as a negative number.
Default is 0.
type
Optional.
When payments are due:
0
End of period
1
Beginning of 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.

## Example

`FV(0.1/12, 5*12, -1000)`

The future value of a 5-year loan with an annual interest of 10%, and monthly payments of \$1,000 is \$77,437.07.

`FV(0.1/4, 5*4, -3000)`

The future value of a 5-year loan with an annual interest of 10%, and quarterly payments of \$3,000 is \$76,633.97.

`FV(0.1, 5, -12000)`

The future value of a 5-year loan with an annual interest of 10%, and annual payments of \$12,000 is \$73,261.20.