Description
NPer returns a Number specifying the number of periods for an annuity based on periodic, fixed payments and a fixed interest rate.
Overloads
NPer (rate, payment, presentValue)
NPer (rate, payment, presentValue, futureValue)
NPer (rate, payment, presentValue, futureValue, type)
Arguments
rate is a Number that specifies the interest rate per period.
payment is a Number or Currency that specifies the payment to be made each period. Payments usually contain principal and interest that doesn't change over the life of the annuity.
presentValue is a Number or Currency that specifies the present value, or value today, of a series of future payments or receipts.
futureValue is an optional Number or Currency that specifies the future value or cash balance you want after you've made the final payment. If omitted, 0 is assumed.
type is an optional Number that specifies when payments are due. Specify 0 if payments are due at the end of the payment period, and 1 if payments are due at the beginning of the period. If omitted, 0 is assumed.
Action
NPer returns a Number specifying the number of periods for an annuity based on periodic, fixed payments and a fixed interest rate.
Examples
Suppose that you want a $200,000 loan to buy a house. The interest rate is 7 percent and you can afford to pay $2500 per month. How long of a mortgage do you need?
NPer (0.07/12, -2500, 200000)
Returns 108.08 (rounded to 2 decimals) months. That is 108.08 / 12 = 9 years.
Rather than seeking a loan, suppose that you want to save up $200,000 and then buy the house. You can get a 7 percent interest rate compounded monthly from your savings plan and want to save $2500 per month. How long will you need to save to have the money?
NPer (0.07/12, -2500, 0, 200000)
Returns 65.85 (rounded to 2 decimals) months. That is about 5.5 years.