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#Financial

PDURATION

Excel Functions

Get periods required to reach given value

Syntax

EXCEL 
=PDURATION(rate, pv, fv)

Arguments

Parameter Description
rate Interest rate per period.
pv Present value of the investment.
fv Future value of the investment.

Return Value

Required time in periods

Details

The PDURATION function calculates how much time is needed for an initial investment (present value) to reach a given amount (future value), assuming a constant annual interest rate. PDURATION returns an amount of time in periods, which is linked to the number of compounding periods per year. With one compounding period per year, periods = years. With 4 compounding periods per year, periods = quarters, and so on. Note: the NPER function returns the number of periods for a series of cash flows (like a loan repayment schedule) whereas PDURATION returns the number of periods for a single sum to achieve a certain amount. Assume you have $5,000 to invest at an annual rate of 5%. When interest is compounded monthly, how long will it take for the initial investment of $5,000 to reach $10,000? In t

Examples

Example

Assume you have $5,000 to invest at an annual rate of 5%. When interest is compounded monthly, how long will it take for the initial investment of $5,

EXCEL 
=PDURATION(C5/C6,C7,C8)
Example

Notice because rate must be provided as interest rate per period, it is given here as the annual interest rate divided by the number of compounding pe

EXCEL 
=F5/C6

See Also

NPER