# 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.

**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:

- 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.

## Related functions

- Pmt
- FV
- NPer
- PV function in Microsoft documentation