NPER function: Description, Usage, Syntax, Examples and Explanation

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What is NPER function in Excel?

NPER function is one of the Financial functions in Microsoft Excel that returns the number of periods for an investment based on periodic, constant payments and a constant interest rate.

Syntax of NPER function

NPER(rate,pmt,pv,[fv],[type])

The NPER function syntax has the following arguments:

  • Rate: The interest rate per period.
  • Pmt: The payment made each period; it cannot change over the life of the annuity. Typically, pmt contains principal and interest but no other fees or taxes.
  • Pv: The present value, or the lump-sum amount that a series of future payments is worth right 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): The number 0 or 1 and indicates when payments are due.
Worked Example:   Calculate periods for annuity in Excel
Set type equal to If payments are due
0 or omitted At the end of the period
1 At the beginning of the period

Example of NPER function

Steps to follow:

Worked Example:   Calculate payment periods for loan in Excel

1. Open a new Excel worksheet.

2. Copy data in the following table below and paste it in cell A1

Note: For formulas to show results, select them, press F2 key on your keyboard and then press Enter.

You can adjust the column widths to see all the data, if need be.

Data Description
0.12 Annual interest rate
-100 Payment made each period
-1000 Present value
10000 Future value
1 Payment is due at the beginning of the period (see above)
Formula Description Live Result
=NPER(A2/12, A3, A4, A5, 1) Periods for the investment with the above terms 59.6738657
=NPER(A2/12, A3, A4, A5) Periods for the investment with the above terms, except payments are made at the beginning of the period 60.0821229
=NPER(A2/12, A3, A4) Periods for the investment with the above terms, except with a future value of 0 -9.57859404
Worked Example:   PMT, RATE, NPER, PV and FV Financial Functions in Excel

For more information about annuity functions, visit:

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