How to use the PV Function (WS, VBA)
This Excel tutorial explains how to use the Excel PV function with syntax and
examples.
Description
The Microsoft Excel PV function returns the present value of an investment based on an
interest rate and a constant payment schedule.
The PV function is a built-in function in Excel that is categorized as a Financial Function.
It can be used as a worksheet function (WS) and a VBA function (VBA) in Excel. As a
worksheet function, the PV function can be entered as part of a formula in a cell of a
worksheet. As a VBA function, you can use this function in macro code that is entered
through the Microsoft Visual Basic Editor.
Syntax
The syntax for the PV function in Microsoft Excel is:
PV( interest_rate, number_of_periods, payment, [FV], [Type] )
Parameters or Arguments
interest_rate
The interest rate for the investment.
number_of_periods
The number of payment periods for the investment.
payment
The amount of the payment made each period. If this parameter is omitted, you
must enter a FV value.
FV
Optional. It is the future value of the payments. If this parameter is omitted, it
assumes FV to be 0.
Type
Optional. It indicates when the payments are due. If the Type parameter is
omitted, it assumes a Type value of 0. Type can be one of the following values:
Value Explanation
0 Payments are due at the end of the period. (default)
1 Payments are due at the beginning of the period.
Returns
The PV function returns a numeric value.
Applies To
Excel for Office 365, Excel 2019, Excel 2016, Excel 2013, Excel 2011 for Mac,
Excel 2010, Excel 2007, Excel 2003, Excel XP, Excel 2000
Type of Function
Worksheet function (WS)
VBA function (VBA)
Example (as Worksheet Function)
Let's look at some PV examples and explore how to use the PV function as a worksheet
function in Microsoft Excel:
This first example returns the present value of an investment that pays $250 at the end
of every month for 2 years. The money paid out will earn 7.5% annually.
=PV(7.5%/12, 2*12, 250, , 0)
Result: -$5,555.61
This next example returns the present value of an investment that pays $50 at the
beginning of every week for 4 years. The money paid out will earn 6% annually.
=PV(6%/52, 4*52, 50, , 1)
Result: -$9,252.07
This next example returns the present value of an investment that pays $100 at the end
of every year for 10 years. The money paid out will earn 5.25% annually.
=PV(5.25%/1, 10*1, 100, , 0)
Result: -$762.88
