__See Also__ __Example__

**Description**

Returns the present value of an annuity based on periodic, constant payments to be paid in the future and a constant interest rate.

**Syntax**

**PV(***rate***,** *nper***,** *pmt***,** *fv***,** *due***)**

**Remarks**

An annuity is a series of constant cash payments made over a period of time. An annuity can be a loan (such as a home mortgage) or an investment (such as a monthly savings plan).

The **PV** function uses the following numeric arguments:

**Argument Description**

*rate* Interest rate per period. For example, if you get a car loan at an annual percentage rate (APR) of 10 percent and make monthly payments, the rate per period is 0.1/12, or 0.0083.

*nper* Total number of payment periods in the annuity. For example, if you make monthly payments on a four-year car loan, your loan has a total of 4 * 12 (or 48) payment periods.

*pmt* Payment to be made each period. Payments usually contain principal and interest that doesn't change over the life of the annuity.

*fv* Future value or cash balance you want after you've made the final payment. The future value of a loan, for instance, is $0. As another example, if you will need $50,000 in 18 years to pay for your child's education, then $50,000 is the future value.

*due* Number indicating when payments are due. Use 0 if payments are due at the end of the payment period, and use 1 if payments are due at the beginning of the period.

The arguments *rate* and *nper* must be calculated using payment periods expressed in the same units. For example, if *rate* is calculated using months, *nper* must also be calculated using months.

For all arguments, cash paid out (such as deposits to savings) is represented by negative numbers; cash received (such as dividend checks) is represented by positive numbers.

**Distribution Note** When you create and distribute applications that use any of the financial functions, you should install the file MSAFINX.DLL in the customer's Microsoft Windows \SYSTEM directory. The Visual Basic __Setup Kit__ provides tools to help you write setup programs that install your applications.