PV function
PV calculates what a series of future payments, or a single future amount, is worth today at a given interest rate. Use it to find how much you can borrow for a payment you can afford, or how much to invest now to reach a goal. As with all the loan functions, payments out are negative and money received is positive.
- Available in
- Every current version
- Category
- Financial functions
- Returns
- The value today. Its sign is the opposite of the payments.
- Google Sheets
- Works the same in Google Sheets.
Syntax
=PV(rate, nper, pmt, [fv], [type])
| Argument | Required? | What it is |
|---|---|---|
rate | Required | The interest rate per period. |
nper | Required | The number of periods. |
pmt | Required | The payment each period. Enter 0 if there is only a single future amount. |
fv | Optional | A lump sum at the end. Defaults to 0. |
type | Optional | 0 or omitted for payments at the end of each period, 1 for the beginning. |
Examples
Each result below is calculated from the sample sheet by our formula engine, the same one that grades the practice.
| Cell | Formula | Result | What it shows |
|---|---|---|---|
| D2 | =PV(B3/12,B4*12,-B2) | $22,726 | Most you can borrow for $450 a month over 5 years |
| D3 | =PV(B3,B4,0,-B5) | $35,649 | What $50,000 in 5 years is worth today at 7% |
| D4 | =PV(B3/12,B4*12,B2) | -$22,726 | Positive payment, negative result: the sign flips |
Try it live
This is the sample sheet. Change any number or text, or edit a formula, and the results update.
Show the sample data as a table
| Input | Value | Result | |
| Monthly payment | $450 | $22,726 | |
| Annual rate | 7.0% | $35,649 | |
| Years | 5 | -$22,726 | |
| Future amount | $50,000 |
Practice PV
From lesson 26, Future & present value. Graded instantly, then re-checked on changed data.
Lump sum today
B9, calculate how much to invest today to reach the goal in B5 after the years in B6, at the annual return in B3 with no added payments.Common mistakes
| What you see | Why, and how to fix it |
|---|---|
| A negative result | PV returns the opposite sign of the payment. Enter the payment as negative to get a positive amount. |
| Using the annual rate with monthly payments | Divide the rate by 12 and multiply the years by 12 so both are monthly. |
| Mixing up PV and NPV | PV assumes equal payments. For cash flows that change from period to period, use NPV. |
Tips
- PV is the inverse of PMT: PV(rate, n, PMT(rate, n, loan)) returns the loan amount.
Questions
How much can I borrow for a given monthly payment?
Use =PV(annual_rate/12, years*12, -payment). At 7% over 5 years, $450 a month supports a loan of about $22,726.
What is the difference between PV and NPV?
PV values equal, regular payments. NPV values a series of cash flows that can differ each period.
Why is the PV result negative?
The payment was entered as positive. Excel gives money in and money out opposite signs.
Lessons that use PV
Last reviewed October 2026. Every example result on this page is calculated live by the Spreadsheet Practice formula engine.