TERM

Calculates 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, future_value:Number)

where:

payment is the regular payment made each period;
interest is the interest rate received;
future_value is the future value you want to achieve.

Formula:

TERM = LN(1 + (future_value × 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).