Excel PV Function
If you want to follow along with this tutorial, please download the example spreadsheet.
Description
The PV function returns the present value of a loan or an investment based on a constant interest rate. It is used to calculate the present value of future payments, alternatively, assuming periodic, constant payments and a constant interest rate.
Syntax and arguments
Formula syntax
Arguments
|
| Type | Due |
| 0 (zero) or omitted | At the end of the period |
| 1 | At the beginning of the period |
Return Value
The PV function returns a negative value.
Errors
#VALUE! error value occurs when any one of arguments are non-numeric value.
Remarks
1. Make sure the argument rate and nper are in the same unit. For instance, a 10-year loan with an annual interest rate of 12% and make monthly payments. Use 12%/12 for rate, 12*10 for nper. If a 10-year loan with an annual interest rate of 12% and make quarterly payments, use 12%/4 for rate, 4*10 for nper.
2. Cash outflows, such as deposits to a trust fund, are shown negative numbers. Cash inflows, such as dividends on investments, are shown as positive numbers.
Version
Excel 2003 or later
Usage and Examples
Example1: when fv and type are omitted
In range B3:C7 that lists the details of a load without future value and type, to calculate its present value, please use the formula:
=PV(C3/12,C5*12,C4)
Press Enter key to get the result.
Example2: when fv and type are not omitted
In range B3:C7 that lists the details of a load, to calculate its present value, please use the formula:
=PV(C3/12,C5*12,C4,C6,C7)
Press Enter key to get the result.
Relative Functions:
-
Excel PRICEMAT Function
The PRICEMAT function returns the price per $100 face value of a security that pays interests at maturity.
-
Excel ACCRINT Function
The ACCRINT function returns the accrued interest on periodic interest-paying securities.
-
Excel ACCRINTM Function
The ACCRINTM function returns the accrued interest for a security that pays interest at maturity.
-
Excel AMORDEGRC Function
The AMORDEGRC function returns the linear depreciation of an asset for each accounting period by applying a depreciation coefficient based on the lifetime of the assets.
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