The **Excel FV function** is a financial operation which allows us to calculate the net future value of any investment based on its constant rate of interest.

The **net future value in Excel** can be determined with constant or periodic payments, or with a single large sum payment.

*Figure 1. of Future Value in Excel*

**Generic Formula**

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

- rate = Rate of interest per period.
- nper = Total amount of scheduled payments.
- pmt = Every payment made per period. Must have a negative value.
- pv (optional) = Current value of the future payments. Once omitted, ti is assumed as zero. Must have a negative value.
- type (optional) = When scheduled payments are due; Default is 0, 1 = beginning of period, and 0 = end of period.

**What is Future Value in Excel**

**Excel FV** is essentially the calculation of the Future Value of an investment with a constant Rate of Interest.

If we are required to determine the future value on a single cash flow which earns a fixed interest, that is compounded over a given period, we can use the **Excel Future Value Function**.

**How to use FV Function in Excel**

We will now demonstrate **how to find future value in Excel** with the following simple steps:

- Collect and arrange the data information available to us in our spreadsheet

* Figure 2. of Future Value Data in Excel*

In the example above, our goal is to calculate the future value of a $6,000 investment with a constant interest rate of 10% over a 10 year period by using the **Excel FV Function**.

- The Excel future value formula we will enter into cell B8 above, is as follows:

`=FV(B4/B6,B5*B6,0-B3)`

*Figure 3. of Future Value Function in Excel*

The **FV calculator in Excel** returns a future value of $26,723.52 on the initial $6,000 investment.

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