FV Function in Excel

The interest rate and number of periods create mathematically impossible results, typically when the rate is extremely high (>100%) or when parameters lead to numerical overflow

1. Verify interest rate is reasonable (typically 0.1% to 20% annually) 2. Ensure nper is positive and realistic 3. Check rate and nper use consistent time units 4. For monthly calculations: divide annual rate by 12, multiply years by 12 5. Avoid extreme values that cause calculation overflow

Add input validation to check that rate is between 0-1 (0-100%) and nper is positive. Use data validation rules to restrict unrealistic inputs.

One or more arguments contain text instead of numbers, empty cells, or errors that propagate to the FV calculation. Common with unformatted percentage inputs

1. Ensure rate is numeric, not text (check for spaces or extra characters) 2. Verify nper contains only numbers 3. Check pmt and pv are numeric values 4. Use VALUE() function to convert text numbers 5. Remove any currency symbols or commas from input cells 6. Check for hidden characters using TRIM() and CLEAN()

Format cells as 'Number' before entering data. Use data validation to allow only numeric entries. Implement error checking for all parameter cells.

Confusion about Excel's cash flow convention. Negative represents money going out (investments), positive represents money coming in (returns). Sign confusion especially common when mixing PV and PMT parameters

1. For savings/investments: Use negative pmt and pv (money you invest) 2. For loans: Positive pv (money received), negative pmt (payments out) 3. FV result will be opposite sign of investments 4. Multiply result by -1 if you need to flip the sign for display 5. Remember: Money out = negative, Money in = positive

Document your cash flow convention clearly. Use consistent signs throughout your model. Consider using ABS() for display purposes if sign confusion is common.

Interest rate period doesn't match payment period. Most common error is using annual interest rate with monthly payments without dividing the rate by 12, or forgetting to multiply years by 12 for monthly periods

1. Monthly payments: Rate = Annual Rate / 12, Periods = Years × 12 2. Quarterly payments: Rate = Annual Rate / 4, Periods = Years × 4 3. Semiannual: Rate = Annual Rate / 2, Periods = Years × 2 4. Always ensure rate and nper use the same time unit 5. Create helper cells to show conversions explicitly

Build a structured input section with clear labels like 'Annual Rate' and 'Monthly Rate = Annual/12'. Use named ranges to avoid confusion. Add comments to explain period conversions.

Either pmt or pv must be provided. Common error is leaving both as 0 or blank, which produces meaningless results. If calculating growth of a lump sum, pv is required with pmt=0. If calculating accumulation from regular payments, pmt is required

1. For lump sum growth: Provide pv, set pmt to 0 2. For periodic savings: Provide pmt, pv can be 0 or initial investment 3. Combined scenario: Provide both pv and pmt 4. At least one of pmt or pv must be non-zero 5. Check formula has all required arguments in correct order: =FV(rate, nper, pmt, [pv], [type])

Use Excel's function argument helper to ensure all parameters are filled. Add data validation to check that at least one of pmt or pv is non-zero before allowing calculation.