Returns the number of payment periods for an annuity.
NPER(rate; payment; presentvalue; futurevalue; type)
- rate: the (fixed) interest rate per period.
- payment: the payment made each period.
- presentvalue: the lump sum payment at the start of the term.
- futurevalue: the cash balance paid at the end of the term (optional - defaults to 0).
- type: when payments are made (optional - defaults to 0):
- 0 - at the end of each period.
- 1 - at the start of each period (including a payment at the start of the term).
- NPER returns the number of payment periods implied by a lump sum (presentvalue) at the start of the term, a payment being made each period for numperiods periods, at fixed rate interest, compounded each period, and a lump sum (futurevalue) at the end of the term.
- See Derivation of Financial Formulas for the underlying formula.
NPER(5%; -100; 0; 1000; 0)
- returns approximately 8.31, the number of periods to realise this scenario.
- The number of periods returned can be fractional. The fraction results from solving the equation, and is not in itself meaningful. Real life periods will be whole.
- Take care that you understand how this function compounds the interest each period. Many financial calculators allow you to set a separate compounding period - spreadsheets do not. Choose the interest rate appropriately.