Excel - compound interest with continuing contribution

Question

I'm looking for a formula in Excel that will use compound interest and let me contribute a continuous payment for "x" number of years.

i.e., a contribution of $10,000 with an annual interest rate of 10%. I make a $10,000 yearly contribution for the next 35 years. How much will the account be worth?

Answer 1

The FV() formula would be what you're looking for.

=FV(10%,35,-10000)

There are variations to this formula.

• 10% assumes you only make one payment a year. If you pay 12 times a year, use 10%/12.
• 35 is the total number of years. This doesn't change even if you change the above.
• -10000 is your 10k / year payment.