How to Use the NPER Function in Excel
Today, we’ll delve into the NPER function, a highly effective tool available in both Microsoft Excel and Google Sheets. The NPER function calculates the number of payment periods required for loans or investments with constant periodic payments and a steady interest rate. It is particularly beneficial for financial analysts, accountants, and anyone engaged in managing loans or investments.
How to Use
The syntax for the NPER function is consistent across both Excel and Google Sheets:
=NPER(rate, payment, present value, [future value], [type])- Rate: The interest rate per period.
- Payment: The payment amount made each period.
- Present Value: The current sum of a series of future payments.
- Future Value: [Optional] The desired cash balance after the final payment. Default is 0 if not specified.
- Type: [Optional] Specifies when payments are due, with 0 indicating the end of the period (default) and 1 indicating the beginning.
Examples
Let’s examine some practical examples of how the NPER function can be utilized:
| Example | Description | Formula |
|---|---|---|
| 1 | Calculate the number of monthly payments for a $10,000 loan at a 5% annual interest rate with monthly payments of $200. | =NPER(5%/12, -200, 10000) |
| 2 | Determine the duration needed to grow a $5,000 investment to $10,000 at a 3% annual interest rate. | =NPER(3%, 0, -5000, 10000) |
By incorporating the NPER function along with other financial tools in Excel or Google Sheets, you can streamline your analysis of loans, investments, and other financial scenarios. This function not only saves valuable time but also enhances the accuracy of your financial calculations.
Explore the capabilities of the NPER function today to elevate your proficiency in financial analysis!
More information: https://support.microsoft.com/en-us/office/nper-function-240535b5-6653-4d2d-bfcf-b6a38151d815
Other functions
Returns the accrued interest for a security that pays periodic interest
Returns the accrued interest for a security that pays interest at maturity
Returns the depreciation for each accounting period by using a depreciation coefficient
Returns the depreciation for each accounting period
Returns the number of days from the beginning of the coupon period to the settlement date
Returns the number of days in the coupon period that contains the settlement date
Returns the number of days from the settlement date to the next coupon date
Returns the next coupon date after the settlement date
Returns the number of coupons payable between the settlement date and maturity date
Returns the previous coupon date before the settlement date
Returns the cumulative interest paid between two periods
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
Returns the depreciation of an asset for a specified period by using the double-declining balance method or some other method that you specify
Returns the discount rate for a security
Converts a dollar price, expressed as a fraction, into a dollar price, expressed as a decimal number
Converts a dollar price, expressed as a decimal number, into a dollar price, expressed as a fraction
Returns the annual duration of a security with periodic interest payments
Returns the effective annual interest rate
Returns the future value of an investment
Returns the future value of an initial principal after applying a series of compound interest rates
Returns the interest rate for a fully invested security
Returns the interest payment for an investment for a given period
Returns the internal rate of return for a series of cash flows
Calculates the interest paid during a specific period of an investment
Returns the Macauley modified duration for a security with an assumed par value of $100
Returns the internal rate of return where positive and negative cash flows are financed at different rates
Returns the annual nominal interest rate
Returns the net present value of an investment based on a series of periodic cash flows and a discount rate
Returns the price per $100 face value of a security with an odd first period
Returns the yield of a security with an odd first period
Returns the price per $100 face value of a security with an odd last period
Returns the yield of a security with an odd last period
Returns the number of periods required by an investment to reach a specified value
Returns the periodic payment for an annuity
Returns the payment on the principal for an investment for a given period
Returns the price per $100 face value of a security that pays periodic interest
Returns the price per $100 face value of a discounted security
Returns the price per $100 face value of a security that pays interest at maturity
Returns the present value of an investment
Returns the interest rate per period of an annuity
Returns the amount received at maturity for a fully invested security
Returns an equivalent interest rate for the growth of an investment
Returns the straight-line depreciation of an asset for one period
Returns the sum-of-years' digits depreciation of an asset for a specified period
Returns the bond-equivalent yield for a Treasury bill
Returns the price per $100 face value for a Treasury bill
Returns the yield for a Treasury bill
Returns the depreciation of an asset for a specified or partial period by using a declining balance method
Returns the internal rate of return for a schedule of cash flows that is not necessarily periodic
Returns the net present value for a schedule of cash flows that is not necessarily periodic
Returns the yield on a security that pays periodic interest
Returns the annual yield for a discounted security; for example, a Treasury bill
Returns the annual yield of a security that pays interest at maturity