PV function

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PV function

Format


PV(payment;interestRate;periods)

Parameters

payment - payment amount to be made per period. Type a negative number for money you pay and a positive number for money you receive.

interestRate - interest rate per period.

periods - number of periods (intervals between payments).

Data type returned

number

Description

Returns the present value of a series of equal payments made at regular intervals (periods), assuming a fixed interestRate per interval.

Note When interestRate is 0, this function returns the result of payment * periods.

Example

Your cousin borrowed $2,000 from you, offering to pay you back $500 a year for five years, for a total of $2,500 at the end of five years. If inflation was 5 percent annually, with the following entry you could find out what those payments are worth with the PV function.

PV(500;.05;5) returns 2164.73833531....

If you want the return value to return two decimal places, enclose the formula with the correct Round function: Round(Current Formula;2).

Related topics

Functions reference (category list)

Functions reference (alphabetical list)

About formulas

About functions

Defining calculation fields

Using operators in formulas

Contents > Functions reference (alphabetical list) > Financial functions > PV function