NPER Function Explained
The NPER Function in Microsoft Excel calculates the number of periods for an investment based on a constant periodic payment and a constant interest rate. It takes three arguments: rate, pmt, and pv. Rate is the interest rate per period, pmt is the payment made each period, and pv is the present value, or the total amount that a series of future payments is worth now. The NPER Function returns the number of periods for the investment.
NPER Function Syntax
NPER(rate, pmt, pv, [fv], [type])
- rate: The interest rate per period.
- pmt: The payment made each period; it cannot change over the life of the annuity.
- pv: The present value, or the total amount that a series of future payments is worth now.
- fv: (optional) 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: (optional) A number 0 or 1 and indicates when payments are due. 0 or omitted = payments are due at the end of the period. 1 = payments are due at the beginning of the period.