Returns the number of periods for an investment based on periodic, constant payments and a constant interest rate.
Syntax
NPER(rate, pmt, pv, fv, type)
For a more complete description of the arguments in NPER and for more information about annuity functions, see PV.
Rate is the interest rate per period.
Pmt is the payment made each period; it cannot change over the life of the annuity. Typically, pmt contains principal and interest but no other fees or taxes.
Pv is the present value, or the lump-sum amount that a series of future payments is worth right now.
Fv is the future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (the future value of a loan, for example, is 0).
Type is the number 0 or 1 and indicates when payments are due.
| Set type equal to | If payments are due |
|---|---|
| 0 or omitted | At the end of the period |
| 1 | At the beginning of the period |
The example may be easier to understand if you copy it to a blank spreadsheet.
How?- Create a blank spreadsheet.
- Select the example in the Help topic.
Selecting an example from Help
- Press CTRL+C.
- In the spreadsheet, select cell A1, and press CTRL+V.
- To switch between viewing the formula that returns the result and the result in the cell, select the cell and press F2 and then ENTER, or click Commands and Options on the spreadsheet toolbar, click the Formula tab, and look in the Formula in active cell (active cell) box.
| Data | Description |
|---|---|
| 12% | Annual interest rate |
| -100 | Payment made each period |
| -1000 | Present value |
| 10000 | Future value |
| 1 | Payment is due at the beginning of the period (see above) |
| Formula | Description (Result) |
| =NPER(A2/12, A3, A4, A5, 1) | Periods for the investment with the above terms (60) |
| =NPER(A2/12, A3, A4, A5) | Periods for the investment with the above terms, except payments are made at the beginning of the period (60) |
| =NPER(A2/12, A3, A4) | Periods for the investment with the above terms, except with a future value of 0 (-9.578) |