Excel-9 is a comprehensive collection and guide to financial functions in Microsoft Excel. This repository provides clear explanations, practical examples, and screenshots for each formula. Its goal is to make Excel finance easy and fun! 📊💡
📚 Purpose: Master essential Excel financial formulas for personal finance, business analysis, and academic use. 🚀
- 🔎 Overview
- 💰 Key Financial Functions
- 🧑💼 Advanced Scenarios
- 🏚️ Depreciation Formulas
- 📊 Profit Margins
- 🖼️ Screenshots
- 🔗 Further Reading & Official Links
- 📝 Requirements
- 👤 Author
Microsoft Excel includes a suite of financial functions designed to solve common problems related to loans, savings, investments, and asset depreciation. This repository explains how to use each function step by step. 🧮
Typical use cases:
- 🏠 Calculate loan payments and schedules (mortgages, car loans, etc.)
- 📈 Determine present or future value of investments
- 💼 Analyze cash flows for business decisions
- 🧾 Calculate depreciation for accounting
- 💹 Compute profit margins
Calculates the periodic payment for a loan or investment based on constant payments and a constant interest rate.
Syntax:
=PMT(rate, nper, pv, [fv], [type])
rate– Interest rate per period (annual rate/number of periods per year).nper– Total number of payment periods.pv– Present value (principal).fv– [optional] Future value (remaining balance after last payment, usually 0).type– [optional] 0 (end of period), 1 (beginning of period).
Example:
Monthly payment for a $185,000 loan, 7% annual interest, 15 years:
=PMT(7%/12, 15*12, -185000)
Returns the interest rate per period for an investment or loan.
Syntax:
=RATE(nper, pmt, pv, [fv], [type], [guess])
Example:
Find the interest rate for a loan with known payment, periods, and present value.
Returns the number of payment periods for an investment or loan.
Syntax:
=NPER(rate, pmt, pv, [fv], [type])
Example:
Find the number of periods.
Returns the present value of an investment or loan.
Syntax:
=PV(rate, nper, pmt, [fv], [type])
Example:
Here its the ammount we borrowed.
Calculates the future value of an investment based on periodic, constant payments and a constant interest rate.
Syntax:
=FV(rate, nper, pmt, [pv], [type])
Example:
Future value of monthly investments.
Returns the payment on the principal for a given period.
Syntax:
=PPMT(rate, per, nper, pv, [fv], [type])
per– Specific period for the calculation.
Example:
Principal paid in the 5th year of a loan.
Returns the interest payment for a specific period.
Syntax:
=IPMT(rate, per, nper, pv, [fv], [type])
Example:
Interest paid in the 5th year of a loan.
ℹ️ Note: the principal part and the interest part always add up to the payment amount.
Calculate the result of compounding interest over multiple periods.
Formula:
=Principal * (1 + rate/nper)^(nper*years)
Example:
Future value of $10,000 invested at 8% compounded annually for 5 years.
More: Compound Interest in Excel
Returns the equivalent interest rate for the growth of an investment.
Syntax:
=RRI(nper, pv, fv)
nper– Number of periodspv– Present value (negative)fv– Future value
📈 CAGR (Compound Annual Growth Rate):
The CAGR measures the growth of an investment as if it had grown at a steady rate on an annually compounded basis.
Example:
Annual rate needed for $10,000 to grow to $14,693.28 in 5 years.
Calculates the net present value of an investment based on a discount rate and future cash flows.
Syntax:
=NPV(rate, value1, [value2], ...)
Note: Subtract initial investment separately.
Example:
Discount rate 12%, Cash flows: Period 0: -100, Period 1: 0, Period 2: 50, Period 3: 150.
Calculates the internal rate of return for a series of cash flows.
Syntax:
=IRR(values, [guess])
ℹ️ Note: The IRR rule states that if the IRR is greater than the required rate of return, you should accept the project. IRR values are frequently used to compare investments.
Excel supports several depreciation methods for fixed assets:
-
SLN (Straight Line): Equal amount each year
=SLN(cost, salvage, life)
Docs: SLN 🏠 -
SYD (Sum-of-Years' Digits): Accelerated depreciation
=SYD(cost, salvage, life, period)
Docs: SYD ⏩ -
DB (Fixed Declining Balance):
=DB(cost, salvage, life, period, [month])
Docs: DB 📉 -
DDB (Double Declining Balance):
=DDB(cost, salvage, life, period, [factor])
Docs: DDB 2️⃣ -
VDB (Variable Declining Balance):
=VDB(cost, salvage, life, start_period, end_period, [factor], [no_switch])
Docs: VDB 🔄
Analyze your business's profitability using these formulas:
- Gross Profit: Revenue – Cost of Goods Sold
🧾 - Gross Profit Margin: (Gross Profit / Revenue)
📏 - Operating Profit: Gross Profit – Operating Expenses
🏭 - Operating Margin: (Operating Profit / Revenue)
🧮 - Net Profit: Operating Profit – Taxes – Interest – Other Expenses
💵 - Net Margin: (Net Profit / Revenue)
📊
Visual step-by-step examples for each formula are provided in the /Screenshots folder. 🖼️
- Microsoft Excel Financial Functions – Full Reference 📖
- Microsoft Excel Functions by Category 🗂️
- Excel Video Tutorials by Microsoft 🎥
- 💻 Microsoft Excel (2013 or later recommended for full function support)
- 🧠 Basic understanding of finance/math is helpful
Repository and documentation by Kuba27x
Excel-9 on GitHub 🌟