Excel NPER function

Function: NPER

Description: Excel NPER function in Microsoft Excel is used to calculate the number of periods required to pay off a loan or other debt, taking into account the loan amount, the periodic payment, and the interest rate. The NPER function can be used to compare different loan options or to determine the length of time required to pay off a debt at a specific payment amount and interest rate.

The syntax for the NPER function is as follows:

Syntax: NPER(rate, pmt, pv, [fv], [type])

Where:

• rate: The interest rate per period.
• pmt: The periodic payment made each period. This value can be negative or positive, depending on whether the payment is an inflow or outflow of cash.
• pv: The present value, or the total amount of the loan.
• [fv]: Optional. The future value, or the balance remaining after the final payment is made. If this value is not specified, it is assumed to be 0 (zero).
• [type]: Optional. A logical value that indicates when the payments are due. If this value is omitted or set to 0 (zero), payments are due at the end of the period. If this value is set to 1, payments are due at the beginning of the period.

Examples:

To calculate the number of months required to pay off a loan of $20,000 with monthly payments of $400 at an annual interest rate of 6%, you can use the following formula:

=NPER(6%/12, -400, 20000, 0, 0)