I'm using Excel to calculate the future value of an investment with continuous monthly contributions over the period of 20 years. My numbers are: Yearly Income - 80,000; Initial Investment -10,000; Monthly Contribution - 5% of Yearly Income/12 ; Average Rate of Return - 8%; Years - 20. My FV function is Average Rate of Return/12, Years*12, (-)Monthly Contribution. My result is not the same as some online calculators I've been testing my number against. What's wrong with my formula? Try this one
=FV (8%/12,20*12,- (80000/12)*5%,,0) +FV (8%/12,20*12,0,-10000,1)
Answer = $245,608.17
I have shown all the figures in the formula itself. You can make cell referencing instead |
