annuterm (Financial Toolbox)

Number of periods to obtain value.

Syntax

nper = annuterm(rate, pmt, pv, fv, due)
nper = annuterm(rate, pmt, pv, fv)
nper = annuterm(rate, pmt, pv)

Arguments

rate: Interest rate per period, as a decimal fraction.

pmt: Payment per period.

pv: Present value.

fv: Future value. Default = 0.

due: When payments are due: 0 = end of period (default), or 1 = beginning of period.

Description

nper = annuterm(rate, pmt, pv, fv, due)

calculates the number of periods needed to obtain a future value. To calculate the number of periods needed to pay off a loan, enter the payment or the present value as a negative value.

Example

A savings account has a starting balance of $1500. $200 is added at the end of each month and the account pays 9% interest, compounded monthly. How many years will it take to save $5,000?

nper = annuterm(0.09/12, 200, 1500, 5000, 0)
nper =
   15.68 months or 1.31 years.