How to Use the FVSCHEDULE Function in Excel

The FVSCHEDULE function is a financial tool in both Microsoft Excel and Google Sheets, designed to compute the future value of an investment under a sequence of varying interest rates. This function is particularly useful in scenarios such as a savings account where the interest rate changes annually, making it a staple in financial modeling and planning.

Syntax

The syntax for the FVSCHEDULE function is consistent across both Excel and Google Sheets:

FVSCHEDULE(principal, schedule)

principal: The initial amount of the investment.
schedule: An array representing different interest rates applicable over time.

Examples

Here are some examples to demonstrate how the FVSCHEDULE function can be applied to solve financial problems.

Example 1: Calculate Future Value with Different Interest Rates

Consider an initial investment of $1000, with interest rates for the ensuing three years at 5%, 6%, and 7% respectively. The FVSCHEDULE function can be used to calculate the future value of this investment.

Year	Interest Rate
1	5%
2	6%
3	7%

Use the FVSCHEDULE formula:

=FVSCHEDULE(1000, {0.05, 0.06, 0.07})

The result will show the future value of the investment after 3 years with the varying interest rates applied.

Example 2: Investment Growth Projection

Imagine projecting the growth of an investment over a 5-year period using annually provided interest rates. The FVSCHEDULE function can facilitate this calculation.

If the initial investment value is in cell A1 and the annual interest rates are in cells B1 through F1, enter the following formula in cell G1 and extend it across for 5 years:

=FVSCHEDULE($A$1, $B$1:$F$1)

This will calculate the future value of the investment for each year, based on the specified interest rates.

Utilizing the FVSCHEDULE function, investors and financial planners can precisely determine the future values of investments under fluctuating interest rates, aiding in more accurate financial forecasting and strategic decision-making.

More information: https://support.microsoft.com/en-us/office/fvschedule-function-bec29522-bd87-4082-bab9-a241f3fb251d

Other functions

ACCRINT

Returns the accrued interest for a security that pays periodic interest

ACCRINTM

Returns the accrued interest for a security that pays interest at maturity

AMORDEGRC

Returns the depreciation for each accounting period by using a depreciation coefficient

AMORLINC

Returns the depreciation for each accounting period

COUPDAYBS

Returns the number of days from the beginning of the coupon period to the settlement date

COUPDAYS

Returns the number of days in the coupon period that contains the settlement date

COUPDAYSNC

Returns the number of days from the settlement date to the next coupon date

COUPNCD

Returns the next coupon date after the settlement date

COUPNUM

Returns the number of coupons payable between the settlement date and maturity date

COUPPCD

Returns the previous coupon date before the settlement date

CUMIPMT

Returns the cumulative interest paid between two periods

CUMPRINC

Returns the cumulative principal paid on a loan between two periods

Returns the depreciation of an asset for a specified period by using the fixed-declining balance method

DDB

Returns the depreciation of an asset for a specified period by using the double-declining balance method or some other method that you specify

DISC

Returns the discount rate for a security

DOLLARDE

Converts a dollar price, expressed as a fraction, into a dollar price, expressed as a decimal number

DOLLARFR

Converts a dollar price, expressed as a decimal number, into a dollar price, expressed as a fraction

DURATION

Returns the annual duration of a security with periodic interest payments

EFFECT

Returns the effective annual interest rate

Returns the future value of an investment

INTRATE

Returns the interest rate for a fully invested security

IPMT

Returns the interest payment for an investment for a given period

IRR

Returns the internal rate of return for a series of cash flows

ISPMT

Calculates the interest paid during a specific period of an investment

MDURATION

Returns the Macauley modified duration for a security with an assumed par value of $100

MIRR

Returns the internal rate of return where positive and negative cash flows are financed at different rates

NOMINAL

Returns the annual nominal interest rate

NPER

Returns the number of periods for an investment

NPV

Returns the net present value of an investment based on a series of periodic cash flows and a discount rate

ODDFPRICE

Returns the price per $100 face value of a security with an odd first period

ODDFYIELD

Returns the yield of a security with an odd first period

ODDLPRICE

Returns the price per $100 face value of a security with an odd last period

ODDLYIELD

Returns the yield of a security with an odd last period

PDURATION

Returns the number of periods required by an investment to reach a specified value

PMT

Returns the periodic payment for an annuity

PPMT

Returns the payment on the principal for an investment for a given period

PRICE

Returns the price per $100 face value of a security that pays periodic interest

PRICEDISC

Returns the price per $100 face value of a discounted security

PRICEMAT

Returns the price per $100 face value of a security that pays interest at maturity

Returns the present value of an investment

RATE

Returns the interest rate per period of an annuity

RECEIVED

Returns the amount received at maturity for a fully invested security

RRI

Returns an equivalent interest rate for the growth of an investment

SLN

Returns the straight-line depreciation of an asset for one period

SYD

Returns the sum-of-years' digits depreciation of an asset for a specified period

TBILLEQ

Returns the bond-equivalent yield for a Treasury bill

TBILLPRICE

Returns the price per $100 face value for a Treasury bill

TBILLYIELD

Returns the yield for a Treasury bill

VDB

Returns the depreciation of an asset for a specified or partial period by using a declining balance method

XIRR

Returns the internal rate of return for a schedule of cash flows that is not necessarily periodic

XNPV

Returns the net present value for a schedule of cash flows that is not necessarily periodic

YIELD

Returns the yield on a security that pays periodic interest

YIELDDISC

Returns the annual yield for a discounted security; for example, a Treasury bill

YIELDMAT

Returns the annual yield of a security that pays interest at maturity