PDURATION

Definition: PDURATION is a function that calculates the duration of an investment with a constant periodic payment and a constant interest rate.

Syntax: =PDURATION(rate, payment, present_value, [future_value], [type])

Situation: This formula is appropriate when you need to calculate the duration of an investment with a constant periodic payment and a constant interest rate.

Example: If you have an investment of $10,000 with an interest rate of 6% per year and a monthly payment of $200, the duration can be found using the formula =PDURATION(6%/12, 200, 10000) which returns 63.85 months.