# PV Function

**Visual Studio .NET 2003**

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

Function PV( _ ByVal Rate As Double, _ ByVal NPer As Double, _ ByVal Pmt As Double, _ Optional ByVal FV As Double = 0, _ Optional ByVal Due As DueDate = DueDate.EndOfPeriod _ ) As Double

#### Parameters

*Rate*- Required.
**Double**specifying 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*- Required.
**Double**specifying 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*- Required.
**Double**specifying payment to be made each period. Payments usually contain principal and interest that doesn't change over the life of the annuity. *FV*- Optional.
**Double**specifying future value or cash balance you want after you've made the final payment. For example, the future value of a loan is $0 because that's its value after the final payment. However, if you want to save $50,000 over 18 years for your child's education, then $50,000 is the future value. If omitted, 0 is assumed. *Due*- Optional. Object of type
`Microsoft.VisualBasic.DueDate`

that specifies when payments are due. This argument must be either`DueDate.EndOfPeriod`

if payments are due at the end of the payment period, or`DueDate.BegOfPeriod`

if payments are due at the beginning of the period. If omitted,`DueDate.EndOfPeriod`

is assumed.

#### Remarks

An annuity is a series of fixed 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 *Rate* and *NPer* arguments 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.

#### Example

In this example, the **PV** function returns the present value of an $1,000,000 annuity that will provide $50,000 a year for the next 20 years. Provided are the expected annual percentage rate (`APR`

), the total number of payments (`TotPmts`

), the amount of each payment (`YrIncome`

), the total future value of the investment (`FVal`

), and a number that indicates whether each payment is made at the beginning or end of the payment period (`PayType`

). Note that `YrIncome`

is a negative number because it represents cash paid out from the annuity each year.

Sub TestPV() Dim Fmt As String = "###,##0.00" ' Define money format. Dim APR, TotPmts, YrIncome, FVal, PVal As Double Dim PayType As DueDate APR = 0.0825 ' Annual percentage rate. TotPmts = 20 ' Total number of payments. YrIncome = 50000 ' Yearly income. FVal = 1000000 ' Future value. PayType = DueDate.BegOfPeriod ' Payment at beginning of month. PVal = PV(APR, TotPmts, -YrIncome, FVal, PayType) MsgBox("The present value is " & Format(PVal, Fmt) & ".") End Sub

#### Requirements

**Namespace:** **Microsoft.VisualBasic**

**Module:** **Financial**

**Assembly:** Microsoft Visual Basic .NET Runtime (in Microsoft.VisualBasic.dll)

#### See Also

DDB Function | FV Function | IPmt Function | IRR Function | MIRR Function | NPer Function | NPV Function | Pmt Function | PPmt Function | Rate Function | SLN Function | SYD Function