The PDURATION function returns the number of periods required by an investment to reach a specified value.

  • This function was introduced in Excel 2013 and so is not available in earlier versions.

Syntax

=PDURATION(rate,pv,fv)

Arguments

Argument Description
rate The interest rate per period
pv The present value of the investment
fv The desired future value of the investment

Note: PDURATION requires that all arguments are positive values.

Examples

  A B C
1 Formula Result Notes
2 =PDURATION(2.5%,2000,2200) 3.86 The number of years required for an investment of $2,000, earning 2.5% annually, to reach $2,200
3 =PDURATION(0.025/12,1000,1200) 87.6 The number of months required for an investment of $1,000, earning 2.5% annually, to reach $1,200

Note: In the example, the annual interest rate of 2.5% in A3 had to be converted into a monthly rate (=0.025/12)

Common Function Error(s)

Problem What went wrong
#VALUE! Occurs if any of the supplied arguments are not recognized as numeric values
#NUM! Occurs if any of the supplied arguments are zero or negative

    \[  PDURATION = \frac{log(fv) - log(pv)} {log(1+rate)}   \]