NPER() calculates the number of periods required to pay off a loan.
Use NPER() to determine how long it will take to repay a debt. For example, if you are paying $500 monthly on your car loan, you could use this function to know when the debt will be cleared. For more information, see Financial Functions.
NPER(rate,payment,amount)
| • | rate is the interest rate per period. |
| • | payment is the payment made each period. |
| • | amount is the amount on which payments are based. |
NPER() assumes that payments are made at the end of the period. The result is returned to two decimal places. For example, 8.33 periods indicates that the balance outstanding after eight periods is approximately one third of a payment.
If you enter an obviously invalid parameter such as a negative interest rate, Analyzer returns an error.
To calculate the number of periods required to repay a 1,000 loan with monthly payments of 50 at 8%:
NPER(.08/12,50,1000) = 21.54
This shows that the loan will be repaid in 22 months.