How to Use the PDURATION Function in Excel

In this tutorial, we will explore the PDURATION function, a commonly used financial tool in Microsoft Excel and Google Sheets. The PDURATION function calculates the time required to reach a specified future value given constant periodic payments and a fixed interest rate.

Syntax

The syntax of the PDURATION function is consistent across both Excel and Google Sheets:

=PDURATION(rate, periodic_payment, present_value, future_value)

rate: The interest rate per period.
periodic_payment: The payment amount made each period. This amount does not change throughout the duration of the investment.
present_value: The current or initial value of the annuity.
future_value: The target value you want the investment to reach.

Examples

Let’s examine several examples to better understand how to utilize the PDURATION function in both Excel and Google Sheets.

Example 1

Calculate the duration needed to reach a future value of $5,000, assuming an annual interest rate of 6%, with monthly payments of $100, and an initial value of $0.

rate	periodic_payment	present_value	future_value	Duration (months)
6%	$100	$0	$5,000	=PDURATION(6%/12, -100, 0, 5000)

In this scenario, the formula =PDURATION(6%/12, -100, 0, 5000) should be entered, yielding approximately 51.99 months.

Example 2

Calculate the duration needed to achieve a future value of $50,000, with an annual interest rate of 8%, making quarterly payments of $1,500, starting with a present value of $10,000.

rate	periodic_payment	present_value	future_value	Duration (quarters)
8%	$1,500	$10,000	$50,000	=PDURATION(8%/4, -1500, 10000, 50000)

For this example, inputting the formula =PDURATION(8%/4, -1500, 10000, 50000) results in approximately 15.3 quarters.

These examples demonstrate how to use the PDURATION function in Excel and Google Sheets to calculate the time needed to reach a specific future value, based on given financial parameters.

More information: https://support.microsoft.com/en-us/office/pduration-function-44f33460-5be5-4c90-b857-22308892adaf

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

FVSCHEDULE

Returns the future value of an initial principal after applying a series of compound interest rates

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

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