Lump Sum Number of Periods Formula


n = LN(FV / PV) / LN(1 + i)
Variables used in the formula
PV = Present Value
FV = Future Value
i = Discount rate
n = Number of periods
LN = natural logarithm


The lump sum number of periods formula is used to work out the amount of time (n) it takes to grow a lump sum from its present value (PV), to a future value (FV) allowing for a given discount rate (i%).

Lump Sum Number of Periods Formula Excel Function

The Excel NPER function can be used instead of the lump sum number of periods formula, and has the syntax shown below.


*The pmt and type arguments are not used when calculating the number of periods for a lump sum.


If a lump sum of 1,000 is received at the start of period 1, and the discount rate is 10%, then the number of periods to increase the value of the lump sum to 2,000 is given by the lump sum number of periods formula as follows:

n = LN(FV / PV) / LN(1 + i)
n = LN(2,000 / 1,000 / LN(1 + 10%)
n = 7.27 periods

The same answer can be obtained using the number of periods formula in Excel as follows:

n = NPER(i,,PV,-FV)
n = NPER(10%,,1000,-2000)
n = 7.27 periods

*don’t forget the minus sign on FV

The lump sum number of periods formula is one of many used in time value of money calculations, discover another at the links below.

Lump Sum Number of Periods Formula November 6th, 2016Team

You May Also Like

Related pages

bookkeeper interview testjournal entries for accounts payablecalculating discount rate in exceldays sales in receivable formulaeom termscash flows excelmarkup to margin calculatoraccounting journal and ledgermicrosoft excel forms templatesarr formulacost of goods sold journal entrywhat are debtors on a balance sheetaccounting aptitude questions and answerssource document accounting definitionjournal general entries accountingaccrued expenses examplescredit noesmall business accounting spreadsheet templateaccounting owners equityhow to record dividends payableshort term notes payable definitionaccounting for consignment salesstockholder equity calculatorunrealized gain loss journal entrykenexa prove it accounting test answersamortization calculation excelexamples of depreciating assetsjournal entry for credit salesirr excel3 column cash book formatpresent value and future value formulashow to calculate present value of cash flows in exceltotal overhead appliedunearned rent revenue balance sheetdiscount allowed journal entryvariable expense per unit formulawhats a fixed costhow to bookkeeping basicsturnover ratio calculatorlifo vs fifo accountingpetty cash fund journal entryexamples of accounts payableis petty cash an asset accountirr function in excelgeneral entries of accountingbasic bookkeeping templateinventory lcmdisbursement voucher templatecreditors turnover ratioroa return on assetsdebit credit balance sheet excelprovision for doubtful accountsdiscounted present value excelthe dupont formulageneral ledger excel templatehow to calculate underapplied overheadweighted average unit cost formulafactory overhead variance analysisannuity factor equationwhat is carriage on purchasesdividend declared journal entryirr excelaccounting journal entries practice problemsjournal entry for sale of assetwages expense journal entryroce equationbasic bookkeeping principlesfv of annuity calculatorcontra revenue definitionannuity perpetuitytreatment of prepaid expensestrial balance sheet in excelsundry creditors definition accountingmock bank statementhow to calculate manufacturing overhead ratebookkeeping depreciationaccounting for obsolete inventorythe accounting for cash discounts and trade discounts are