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
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.
|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:
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.
|0.12||Annual interest rate|
|-100||Payment made each period|
|1||Payment is due at the beginning of the period (see above)|
|=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|
For more information about annuity functions, visit: