How to Calculate Future Value of Uneven Cash Flows in Excel

What Is the Future Value of Uneven Cash Flows?

Future Value is the total amount of the Present Value and Total Interest. To calculate the future value of uneven cash flows, the future value for each cash flow is calculated, then all values are added to get the total future value.

The formula for calculating the future value of uneven cash flow is given below.

`FV = CF0 * (1+r)^ n + CF1 * (1+r)^ n-1+ CF2 * (1+r)^ n-2 + â€¦â€¦. +CFn`

CF represents the Cash Flow, r represents Interest Rate and n indicates the Total Number of Payment Periods.

How to Calculate the Future Value of Uneven Cash Flows in Excel: 3 Ways

Method 1 – Using the FV Function to Calculate the Future Value of Uneven Cash Flows Excel

We have a dataset containing the Time Period (Year), Cash Flow, and the Rate of an investment. We will use this dataset to calculate the future value using the FV function.

Steps:

• Select cell D5.
• Insert the following formula.
`=FV(\$C\$12,\$B\$10-B5,,C5)`

• Press Enter to get the Future Value.
• Drag down the Fill Handle tool to AutoFill the formula for the rest of the cells.

• You will get all the values to the future value for each time period using the FV function.

• Select cell C13.
• Insert the following formula.
`=SUM(D5:D10)`

• You will get the Total Future Value which is in negative form.

• To convert the value into a positive one, select cell C13 and insert the following formula.
`=-SUM(D5:D10)`

• You will get your desired total future value in Excel.

Method 2 – Use of NPV and FV Functions to Calculate the Future Value of Uneven Cash Flows

We have a dataset containing the Time Period (Year), Cash Flow, Rate, and Total No. of Payment Periods of an investment.

Steps:

• Select cell C14.
• Insert the following formula.
`=NPV(C12,C5:C10)`

• Press Enter to get the Future Value.

• Select cell C15.
• Insert the following formula.
`=FV(C12,C13,,C14)`

• Press Enter to get the Future Value.

• Select cell C15.
• Insert the following formula.
`=-FV(C12,C13,,C14)`

• You will get your desired future value in Excel.

Method 3 – Manually Calculating the Future Value of Uneven Cash Flows in Excel

Steps:

• Select cell D5.
• Insert the following formula.
`=C5*(1+\$C\$12)^(\$B\$10-B5)`

• Press Enter to get the future value.
• Drag down the Fill Handle tool to AutoFill the formula for the rest of the cells.

• You will get all the future values for each time period.

• Select cell C13.
• Insert the following formula.
`=SUM(D5:D10)`

• You will get your desired Total Future Value of uneven cash flows.

Practice Section

We’ve included a practice section in the file so you can test out these methods.

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Arin Islam

Anowara Islam Arin, a graduate of Civil Engineering from Khulna University of Engineering & Technology, Bangladesh, serves as a technical content creator in the ExcelDemy project. Possessing a passion for innovation and critical thinking, she actively embraces challenges. Beyond her engineering background, Arin exhibits a keen interest in Excel, having authored numerous articles on Excel & VBA-related issues to simplify the experience for users facing obstacles in Excel. Besides, she is also interested in Advanced Excel,... Read Full Bio

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