Posts Tagged 'Financial functions'

How to calculate IRR in Excel with formulas, template and Goal Seek

When you know the internal rate of return of a project, you may think you have all you need to evaluate it - the bigger the IRR the better. In practice, it's not that simple. Continue reading

How to use MIRR function in Excel to calculate modified internal rate of return

For many years, finance experts and textbooks have warned about the flaws and deficiencies of the internal rate of return, but many executives keep using it for assessing capital projects. Do they enjoy living on the edge or simply are not aware of the existence of MIRR? Continue reading

Excel XIRR function to find internal rate of return for non-periodic cash flows

Calculating IRR for periodic cash flows is easy. In real life situations, however, cash inflows and outflows often happen at irregular intervals. Thankfully, Microsoft Excel has a special function to find IRR in such cases, and this tutorial will teach you how to use it. Continue reading

How to use Excel IRR function to calculate internal rate of return

IRR in Excel is one of the financial functions for calculating the internal rate of return, which is frequently used in capital budgeting to judge projected returns on investments. Continue reading

How to calculate NPV in Excel - net present value formula examples

Microsoft Excel has a special function for calculating NPV, but its use can be tricky especially if you have little experience in financial modeling. The purpose of this tutorial is to show you how the Excel NPV function works and point out possible pitfalls when calculating the net present value of a series of cash flows. Continue reading

How to make a loan amortization schedule in Excel (with extra payments)

The tutorial shows how to make an amortization schedule in Excel to detail periodic payments on an amortizing loan or mortgage, including an amortization schedule with extra payments and a variable number of periods. Continue reading

Excel IPMT function to calculate interest portion of a loan payment

The interest portion of a loan payment can be calculated manually by multiplying the period's interest rate by the remaining balance. But Microsoft Excel has a special function for this – the IPMT function. In this tutorial, we will go in-depth explaining its syntax and providing real-life formula examples. Continue reading

Excel PPMT function with formula examples

When you make periodic payments on a loan or mortgage, a certain part of each payment goes towards the interest and the remainder is applied to the loan principal. In this tutorial, we will look at how to use the PPMT function to calculate the principal portion of the payment. Continue reading

How to use PMT function in Excel with formula examples

Before you borrow money it's good to know how a loan works. Thanks to the Excel financial functions such as PMT, PPMT and IPMT, computing periodic payments for a loan is easy. In this tutorial, we will have a closer look at the PMT function. Continue reading

Linear regression analysis in Excel

Run regression analysis in Excel to get the answers to the following questions: Which factors matter and which can be ignored? How closely are these factors related to each other? And how certain can you be about the predictions? Continue reading

How to use LINEST function in Excel - formula examples

In this tutorial, intended for beginners, we will touch only lightly on theory and calculations behind the Excel LINEST function. Our main focus will be on providing you with a formula that simply works and which you can easily customize for your data. Continue reading

How to calculate CAGR (compound annual growth rate) in Excel - formula examples

The tutorial explains the basics of the Compound Annual Growth Rate and provides a few formulas to calculate CAGR in Excel. Continue reading

How to calculate compound interest in Excel - formula for daily, monthly, yearly compounding

The tutorial explains the compound interest formula for Excel and provides examples of how to calculate the future value of the investment at annual, monthly or daily compounding interest rate. You will also find the detailed steps to create your own Excel compound interest calculator. Continue reading