1. Calculation functions
  2. All functions
  3. Financial functions
  4. PV

The PV function calculates the present value of an investment or the principal value of a loan.

For example, you can use the PV function to calculate the amount you can borrow for a loan, or the amount you need to invest to achieve a financial goal.

Syntax

PV(Interest rate, Number of periods, Payments, Future value, Payment timing)

Arguments

ArgumentData typeDescription
Interest rate (required)NumberThe interest rate per period.
Number of periods (required)NumberThe total number of periods.
Payments (required)NumberThe amount paid each period.
Future value (required)Number

The future value of the investment or loan.

For a loan, the future value is 0.

Payment timing (required)Number

Determines whether each payment is made at the start or end of each period. If a payment is made at the start of the period, that period's interest applies to it.

You can enter a value of 0 or 1 for this argument. If you enter:

  • 0, payments are made at the start of each period
  • 1, payments are made at the end of each period

The PV function returns a number.

Additional information

Positive and negative values

For any values you give the PV function via an argument, or that the function returns:

  • a positive value represents money you receive, such as a dividend or loan.
  • a negative value represents money paid, such as a deposit or interest payment.

Consistent time periods

You must use the same time periods for the Interest rate, Number of periods, and Payments arguments. For example, an investment might over 3 years. In this case, there are 36 monthly periods, and you should divide the annual interest rate by 12. Additionally, any payment amounts should also be monthly.

Calculation engine functionality differences

Most financial functions are unavailable in Polaris, but you can use FV, IPMT, NPER, PPMT, and PV. Learn more about the differences between Anaplan calculation engines.

Excel equivalent function

PV(opens external page)

Related Anaplan functions

Examples

Loan example

In this example, a module has the Mortgages list on columns, and line items on rows. The Interest rate line item uses the Percentage format.

The formula uses the PV function to calculate the amount a customer can borrow for each mortgage. The interest rate is divided by 12 to reflect monthly payments at the end of each period.


Mortgage 1Mortgage 2
Interest rate5%5%
Number of periods360300
Payments1000550

Principal loan value

PV(Interest rate / 12, Number of periods, Payments, 0, 1)

-$187,057.79-$94,475.04

Investment example

In this example, a module has the Customers list on columns, and line items on rows. The Interest rate line item uses the Percentage format.

The formula uses the PV function to calculate the required investment amount for each customer. For example, if a customer wants to save $50,000 over 10 years at an interest rate of 5%, they need to initially invest $30,358. 


Customer 1Customer 2
Interest rate5%7.5%
Number of periods12036
Future value$50,000$10,000

Present investment value

PV(Interest rate / 12, Number of periods, 0, Future value, 0)

-$30,358-$7,991

Disclaimer

We may update our documentation occasionally, but will only do so in a way that does not negatively affect the features and functionality of the Anaplan service.