This teaches you how to use the FV() Future Value function in excel in order to calculate how much a savings or retirement plan will be worth in so many years. This is a simple example and assumes annuity like payments. You will learn how to do this on an annual basis and then how to modify that to work for any number of deposits per year or period.
If you want to follow along with the spreadsheet seen here or just to download that spreadsheet, check out the website and navigate to this tutorial:
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Saving for retirement is an important part of financial planning. When it comes to calculating the value of your savings or retirement plan, Excel’s FV() function is a great tool. With this function, you can easily determine the future value of your savings or retirement plan based on a few key inputs.
The FV() function is a financial function in Excel that calculates the future value of an investment. It takes four inputs: rate, nper, pmt, and pv. The rate is the interest rate of the investment. The nper is the number of periods (usually years) over which the investment will be made. The pmt is the amount of money that will be invested each period. The pv is the present value of the investment.
Using these inputs, the FV() function will calculate the future value of the investment. This is the amount of money that you will have at the end of the investment period. For example, if you wanted to calculate the future value of a 10-year retirement plan with an interest rate of 5%, an initial investment of $1000, and monthly payments of $100, the formula would look like this:
=FV(0.05, 10*12, -100, -1000)
This would return a result of $19,659. This is the amount that you would have at the end of the 10-year period if you followed the investment plan.
The FV() function is a great tool for calculating the future value of a savings or retirement plan. With just a few inputs, you can easily determine the amount of money that you will have at the end of your investment period. This will give you an idea of how much money you need to save in order to meet your retirement goals.
How can i use this formula with a beginning balance.
What kind of account is this ? what kind of retirement account?
My retirement is settled. I just received $67,000 from expeditetools ,com
How do you have your rate cells formatted? I have them as percentage, input my rate for 5% (keyboard: [5],[enter]) which displays as "5%", but this causes the cell to display ".0040741". I've tried to format them as just a number or general, but it still gives me an incorrect value for the rate (compared to your ".41" or ".416666"). Please help, thank you!
Not only does this video teach me about how much money I can have later on this month, but lets me become even more tech navi on whatever device that I am on hat is equipped with excel.If I have a savings plan 40 years I have 5 % and it shows me how much I have saved. annually, in the beginning of the year and in the later section of the year. this video also teaches me formulas that we had learned in my teacher's class Fv= future value, pv= present value which is what money is already in there.
God bless you!!! have had so much headache before getting this.
How do I get a copy of this excel sheet?
Isn't the monthly rate = annual rate/12? Why is that function necessary?
why don,t you round the 4.1 to 4.2 on the monthly percentage
That formula just shows you the difference between depositing once per year or once per month. That particular formula is how you convert the annual (yearly) rate to a monthly rate. Replace the 12 with a 4 to get the quarterly rate and a 2 to get the semiannual rate.