NPER

Syntax

NPER (Rate, Pmt, PV, FV, {Type})

Description

The NPER function returns the number of payment periods required to accumulate a future value of FV when the present value is PV, the payment is Pmt, and the rate is Rate. If Type is omitted or zero, NPER assumes that the investment is an ordinary annuity. If Type is nonzero, NPER assumes that the investment is an annuity due.

Note:

Enter negative amounts for money out of your pocket, or positive amounts for money coming to you.

Example

Suppose that you deposit 1000 USD at the end of each year in a savings account that earns 6 percent per year. To determine how many years it takes before the account is worth 20000 USD , use the following formula for the YEARS_REQUIRED cube:

NPER(0.06, -1000, 0, 20000) = 13.53

Note:

The decimal part of the answer is not particularly meaningful; you cannot be sure of getting the 20000 USD until the end of the 14th year.

If you deposit the 1000 USD at the start of each year, use the following formula. The 1 for the Type argument indicates an annuity due:

NPER(0.06, -1000, 0, 20000, 1) = 12.99

If the account already has 5000 USD in it at the start, use the following formula:

NPER(0.06, -1000, -5000, 20000, 1) = 8.72