PV Formula Excel

This Excel Tutorial demonstrates how to use the Excel PV Function in Excel to calculate the present value of an investment, with formula examples.

PV Function Description:

The PV Function Calculates the present value.

Formula Examples:

pv function examples

Example Formula Result
End of Period Payment =PV(C5,D5,E5,F5) -186.0037
Beg of Period Payment =PV(C6,D6,E6,F6,G6) -318.4888

Syntax and Arguments:

The Syntax for the PV Formula is:

Function Arguments ( Inputs ):

rate – The interest rate per period. Example: use 8%/2 = 4% for semi-annual payments at 8% APR.

nper – The total number of payment periods

pmt – The payment amount. Payment must remain constant.


type – The payment type. 1 for beginning of period. 0 for end of period (default if ommitted).

Additional Notes

Use the PV Function to calculate the Present Value of an investment.
Investopedia defines present value as: The current worth of a future sum of money or stream of cash flows given a specified rate of return.

For PMT, cash out-flows must be negative. Cash In-flows must be positive.

PV Examples in VBA

You can also use the PV function in VBA. Type:
For the function arguments (rate, etc.), you can either enter them directly into the function, or define variables to use instead.

Return to the List of all Functions in Excel

How to use the PV Function in Excel:

To use the AND Excel Worksheet Function, type the following into a cell:
After entering it in the cell, notice how the AND formula inputs appear below the cell:
pv formula syntax
You will need to enter these inputs into the function. The function inputs are covered in more detail in the next section. However, if you ever need more help with the function, after typing “=PV(” into a cell, without leaving the cell, use the shortcut CTRL + A (A for Arguments) to open the “Insert Function Dialog Box” for detailed instructions:
how to use the pv function in excel

For more information about the PV Formula visit the
Microsoft Website.

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