TERM

Computes how many periods it will take regular equal payments at a fixed periodic interest rate to reach a future value.

Syntax:

TERM(payment:number, interest:number, fv:number)

paymentThe regular payment made each period
interestThe interest rate received
fvThe future value you want to achieve

The following formula is used by the TERM function:

term = ln(1 + (fv × interest ÷ payment)) ÷ ln(1 + interest)

Example:

If you invest £500 a year into a pension fund, with an interest rate of 10% per year, how long will it take to accumulate £100,000? The formula

TERM(500, 0.10, 100000)

returns the number 31.94 (years).