Forum Discussion
"Reverse FV" function? Or?
If you're looking for an alternative way to calculate the required monthly investment (not using PMT), you can also derive it using the future value of a series formula and solve it algebraically.
= (A2 - A4 * (1 + A3/12)^(A1*12)) / (((1 + A3/12)^(A1*12) - 1) / (A3/12))
This is mathematically identical to PMT, but avoids using built-in financial functions β useful if:
You want to understand what's happening behind the scenes.
Youβre building a custom financial model.
You're using software without PMT.
...otherwise, for the sake of simplicity, I recommend the formula suggested by Mr. Vogelaar π.
- OBWM_Daniel_OMay 22, 2025Copper Contributor
Thank you very much Nikolino!
Can you recommend me also algebraical function as a replacement of POWER function from Excel?
I mean:
A1 = 100% (total return)
A2 = 10 (years of investment)
A3 = needed yearly return (p.a.) which I need to extract
Now I am using POWER function inside Excel, but if there is algebraical formula for this, it will be much appreciated π
Thank you!