Returns a Double specifying the present value of an annuity based on periodic, fixed payments to be paid in the future and a fixed interest rate.

## Syntax

**PV**(*rate*, *nper*, *pmt*, [ *fv*, [ *type* ]])

The **PV** function has these named arguments:

Part | Description |
---|---|

rate |
Required. Double specifying interest rate per period. For example, if you get a car loan at an annual percentage rate (APR) of 10 percent and make monthly payments, the rate per period is 0.1/12, or 0.0083. |

nper |
Required. Integer specifying total number of payment periods in the annuity. For example, if you make monthly payments on a four-year car loan, your loan has a total of 4 * 12 (or 48) payment periods. |

pmt |
Required. Double specifying payment to be made each period. Payments usually contain principal and interest that doesn't change over the life of the annuity. |

fv |
Optional. Variant specifying future value or cash balance you want after you've made the final payment. For example, the future value of a loan is $0 because that's its value after the final payment. However, if you want to save $50,000 over 18 years for your child's education, $50,000 is the future value. If omitted, 0 is assumed. |

type |
Optional. Variant specifying when payments are due. Use 0 if payments are due at the end of the payment period, or use 1 if payments are due at the beginning of the period. If omitted, 0 is assumed. |

## Remarks

An annuity is a series of fixed cash payments made over a period of time. An annuity can be a loan (such as a home mortgage) or an investment (such as a monthly savings plan).

The *rate* and *nper* arguments must be calculated using payment periods expressed in the same units. For example, if *rate* is calculated using months, *nper* must also be calculated using months.

For all arguments, cash paid out (such as deposits to savings) is represented by negative numbers; cash received (such as dividend checks) is represented by positive numbers.

## Example

In this example, the **PV** function returns the present value of an $1,000,000 annuity that will provide $50,000 a year for the next 20 years. Provided are the expected annual percentage rate (`APR`

), the total number of payments (`TotPmts`

), the amount of each payment (`YrIncome`

), the total future value of the investment (`FVal`

), and a number that indicates whether each payment is made at the beginning or end of the payment period (`PayType`

). Note that `YrIncome`

is a negative number because it represents cash paid out from the annuity each year.

```
Dim Fmt, APR, TotPmts, YrIncome, FVal, PayType, PVal
Const ENDPERIOD = 0, BEGINPERIOD = 1 ' When payments are made.
Fmt = "###,##0.00" ' Define money format.
APR = .0825 ' Annual percentage rate.
TotPmts = 20 ' Total number of payments.
YrIncome = 50000 ' Yearly income.
FVal = 1000000 ' Future value.
PayType = BEGINPERIOD ' Payment at beginning of month.
PVal = PV(APR, TotPmts, -YrIncome, FVal, PayType)
MsgBox "The present value is " & Format(PVal, Fmt) & "."
```