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Let's say I want to generate $100,000 over 5 years at 9% interest compounding yearly.

Is there a function or formula that will let me calculate the amount to be invested per month to reach that goal in that period of time?

I looked into the financial functions here, this one looked similar but doesnt do what I want.

1 Answer 1

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The command PMT can be used for this. Specifically,

=PMT(0.09, 5, 0, -100000)

returns $16,709.25. I checked that the amount is correct:

  • $16,709.25 after 1 year (investment only)
  • $34,922.32 after 2 years (investment + 9% interest on 16,709.25)
  • $54,774.58 after 3 years (investment + 9% interest on 34,922.32)
  • $76,413.54 after 4 years
  • $100,000.00 after 5 years

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