Excel NPER Function

NPER function is used to return the calculated number of payment installment periods. It is a built-in Excel function and it is classified as a financial function. This function is used to retrieve the number of installments paid over a period of time using the specified parameters (loan or investment), the regular payment over the given period of time and the interest rate.

The general formula

=NPER (rate, pmt, pv, [fv], [type])

Explanation

rate – This represents the given interest rate over a period of time.
pmt – This is the regular payment amount made over each period
pv – This indicates the present value of payment made at the moment.
fv – Setting this argument is optional. It represents the future value. It is set by default to zero.
type – This is also optional. It shows when payment is expected.

0 – end of the period. 1 = start of the period. The present value is 0.

Example

Input formula

=NPER(C5/12,C6,-C4)

Figure 1. Using Excel NPER function

How to use the NPER function

The function is used to return the number of times a payment should be made (installments) for a loan or an investment using the amount given, the amount to be paid at regular intervals and the interest rate.

Note:

PMT-  it includes the principal amount and the interest accrued. It, however, does not include reserve payments or taxes.

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