I have an exciting news & massive post for you.
As of Jan 19, 2011, our little blog has registered our 20,000th RSS Subscriber. While this is not a huge achievement or anything, It certainly calls for celebration. I am so happy to see our mission to make people awesome in Excel is reaching out to more people everyday. Thank you.
To celebrate this milestone, I am doing a massive post with 220 Excel tips, tricks, tutorials & templates.
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These 220 tips are broken down in to following areas. Click on the links to access them.
- Formulas [52 tips]
- Formatting & Conditional Formatting [36 tips]
- Charting [60 tips & templates]
- Tables & Pivot Tables [15 tips]
- Using Excel [47 tips]
- Free Downloads [5 downloads]
- Recommended Resources [5 resources]
Formulas [52 tips]
Learn 5 tips on how to use IF formula, CHOOSE Formula in Excel. [link]
Find out how you can sum or count values that meet a criteria. A must have tool for any analyst or manager using Excel. [link]
Lookup formulas are famous for a reason. In this article, you will learn how to use them to find anything, well, almost! [link]
While VLOOKUP is awesome, it can-not go left. That is why you must learn how to use INDEX+MATCH combination. [link]
OFFSET formula becomes very important if you ever plan to make an excel dashboard. So go ahead and learn. [link]
I just love SUMPRODUCT formula. And read this to find out why. [link]
SUMIFS & COUNTIFS formulas are like Swiss army knifes. They can do pretty much anything and still look slick. [link]
Find out how you can use ROWS or COLUMNS formulas to generate sequential numbers [link]
Learn how to calculate moving average using Excel. [link]
Learn how to write formulas to test Between condition. [link]
Calculate weighted average using Excel formulas [link]
Learn to write either-or (XOR) conditions using excel formulas [link]
SUBTOTAL is a powerful & low profile formula. In this article we explore the possibilities and show you some cool examples. [link]
If you use Excel to do anything more than counting your chickens, chances are you use VLOOKUP quite often. Read this to learn 6 important VLOOKUP tips. [link]
15 Formulas for Advanced Users
Anyone can write a SUM or IF formula. But how well do you know some of the powerful formulas in Excel. Read this to know 15 very useful formulas in Excel. [link]
10 Formulas & Tips for working with Date & Time in Excel
Dealing with dates is not something only for young people. Analysts and managers work with dates & times all the time. In this article, we explain 10 powerful ways in which you can work with Excel Date & Time values. [link]
Formatting & Conditional Formatting [36 tips]
16 Paste Special Tips & Tricks
Paste special is one of my favorite features in Excel. In this article, we explore various ways paste special can save us time. [link]
5 Ways to become Awesome using Conditional Formatting
Conditional formatting is your way of asking excel to change a cell’s formatting when a certain condition is met. You can use it do some pretty awesome things. In this classic chandoo.org article, learn 5 ways to use conditional formatting to become awesome. [link]
15 Fun things you can do in Excel in less than 15 seconds
How well do you know Excel? See this list to find out 15 simple but fun things you can do in less than 15 seconds. [link]
Charting [60 tips]
Thermo-meter Chart – Excel Tutorial & Free Template
Prepare a thermo-meter chart to compare actual performance with targets. [link]
Bullet Graph – Excel Tutorial & Free Template
Learn how to make bullet graphs using Excel. [link]
Comparison chart – Excel Tutorial & Free Template
Learn how to make an interactive comparison chart to compare one value with several others. [link]
Pareto Chart – Excel Tutorial & Free Template
Pareto analysis is very important in quality control, decision making etc. In this tutorial learn how to create pareto charts using Excel. [link]
Water Fall Chart – Excel Tutorial & Free Template
Water-fall charts are a good way to visualize how various components contribute to the overall outcome. Like how net profit is arrived etc. Know how to make these charts using Excel. [link]
Panel Charts – Excel Tutorial & Free Template
What are panel charts and how to make them using Excel? [link]
Gantt Chart – Excel Tutorial & Free Template
Gantt charts are an excellent way to plan for a project and track it. Learn how to use Excel’s conditional formatting, cell grid structure etc. to make Gantt charts. [link]
Project Timeline Chart – Excel Tutorial & Free Template
Timeline charts are a great for showing project progress and macro level picture. In this article, we show you how to make such milestone / timeline charts using Excel. [link]
Burn Down Chart – Excel Tutorial & Free Template
Burn down charts help you in visualizing how far the project has progressed. Learn how to create these charts using Excel. [link]
Dynamic Chart – simple example – Excel Tutorial & Free Template
Learn how to make simple dynamic chart using Excel data validation feature. [link]
Dynamic Chart with Checkboxes – Excel Tutorial & Free Template
Learn how to make a dynamic chart with checkboxes and interactivity. [link]
More Dynamic Charts – Excel Tutorial & Free Template
Get more examples, templates & tutorials on Dynamic charts using Excel [link]
In-cell Charts – Excel Tutorial & Free Template
Get more examples, templates & tutorials on incell charts using Excel [link]
Make compelling, effective charts by following these 5 simple rules. [link]
5 Chart formatting tips that cost you nothing and make your charts look cool. [link]
Come what may, do not make any of these 6 types of charts. They are ugly. Period. [link]
Charting Lessons from Optical Illusions
We come across optical illusions all the time. But do you know they also teach valuable lessons on chart formatting & Selection? [link]
Pie charts are ineffective in all but few scenarios. But how do you show composition of several values? Read this post to find 10 alternatives to pie charts. [link]
Back in 2009, we ran a contest on how to visualize budget vs. actual data. You can see 14 different charting ideas in this article. [link]
Tables & Pivot Tables [15 tips]
Excel tables are a new and powerful feature introduced in Excel 2007. Ever since I learned them, I have been much more productive while making dashboards or reports. Read these 10 tips to learn how to use Excel tables better. [link]
Pivot tables are a great way to analyze data and make reports. In this post, learn 5 powerful pivot table tricks & tips. [link]
Using Excel [47 tips]
Learn how to use Double click feature on your mouse to save time and become awesome in Excel. [link]
Learn how to use Mouse to become even more productive in Excel [link]
10 Ways to make your Excel Workbooks Boss-proof
While not all bosses are like Dilbert’s boss, we do realize that they like to press things and test. So it is a good idea to make your workbooks boss-proof. Learn 10 tips to do so. [link]
15 Excel Productivity Tips & Tweaks
Do you know that you can customize excel to make yourself more productive? You can turn off annoying features and set default formatting options to save precious time and make better worksheets all the time. Read this post to learn 15 such customizations & productivity tips. [link]
12 Rules for Making Better Spreadsheet Models
It is a good idea to follow a set of principles while designing a complex workbook model or dashboard. In this post you can find 12 rules for making better excel workbooks. [link]
Free Downloads [5 tips]
Using this handy one-pager, you can quickly remember the syntax for the most used formulas. Also find out what to do if there is an error. [link]
Get this e-book (available only on subscription to my newsletter) to enjoy 95 excel tips & tricks. [link]
Learn how to use Excel 2007 Ribbon
Learn how to use Excel 2007’s ribbon based user interface using this handy guide. [link]
12 Rules for Better Spreadsheets – Poster
Larry’s spreadsheet rules in a simple poster. Very useful if you work on spreadsheet models often [link]
Use this cheat-sheet to write better VLOOKUP formulas [link]
Recommended Resources [5 tips]
Join my Excel school program to learn Excel in a step-by-step fashion and become awesome. We have 23 hours of instruction on Excel & 8 hours of lessons on Dashboards. Click here to learn more. [link]
Excel Project Management Templates
Get a copy of my Excel Project Management templates so that you can save time and become a better project manager. The template pack has 24 templates to take care of various key areas of project management like planning, status reporting, tracking, timesheets etc. [link]
Learn 75 Excel Formulas [e-book]
In this easy to understand e-book, I explain 75 very important Excel formulas in plain English. Get a copy today and learn something new. [link]
Jon Peltier’s Charting Utilities
I recommend Jon’s charting utilities. You can make some of the custom charts that are not part of Excel charting gallery in minutes using his tools. They can save you lots of time and money. [link]
Excel Everest Training Kit for Learning Excel
I recommend using Sean’s Excel Everest if you are an Excel beginner. This is an interactive excel workbook designed to teach you various features of Excel. You can read my review. [link]
Thank you
Thanks for your support to Chandoo.org. Without you this milestone or anything else that we achieve is meaningless. I wish you even more awesomeness and knowledge in the months and years to come.
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62 Responses to “Introduction to Financial Modeling using Excel [Part 1 of 6]”
Oooh! Chandoo - are you looking to outperform the Altman Z-Score?
I'm all ears 😉
Many thanks, Paramdeep. Looking forward to the remaining parts of the series
Thank you Paramdeep. I look forward to following the series.
Those interested in Financial Modelling may also find this site interesting:
http://www.fimodo.com/
Hi Chandoo,
Really looking forward for this awesome financial modeling journey 🙂
All the very best..
Regards
Rohit1409
Hi Chandoo,
it seems the future is not away when we will have a new software/spreadsheet as competitor to Microsoft Office/Linux etc.......Hats Off to you..
KEEP SMILING
GURU
@apex, clarity: Thanks...
@all: I do hope that you have started creating the model for the simple case given.. Lets see, what according to you all is the best way forward. So your views on the best practices for the template for valuation?
The planning process varies depending on the project and type of data I am looking at.
If I am doing a cost impact study based on actuals, verses a cost impact study to estimate future cost, verses reviewing historical data then creating a model, verse having to review historical data, apply it to a draft model, update the model based on the draft outputs and the presentation then sometimes repeat the process a few times.
Revisions are an absolutely necessary part of corporate financial modeling especially for the presentation sections. A good presentation will be revised multiple time. There are just to many elements which cannot be planned for, especially with ad hoc reports/models.
Revisions are leading cause of errors, and time spent tracking down errors. The more complex the model the more important revision control is. I would be interested in a section on revision control and good methodologies to determine the effect of changes on models. That is without having to due detail review of the whole model over again.
Hi Paramdeep,
I can't wait for the continuation of this series. You have done a great job in making technical terms appear simple and easy to understand. This article is also very useful in our line of business, in fact i will be featuring this article in our site. Of course the credits will go out to you.
Many thanks and keep it up!
Drew
[...] Introduction to Financial Modeling [...]
[...] Introduction to Financial Modeling [...]
[...] Introduction to Financial Modeling [...]
[...] Introduction to Financial Modeling [...]
@Drew: Thanks! Hope that you found the tutorials useful. Feel free to get back with any queries.
[...] you are building financial models or any other type of excel based decision models, chances are, there will be multiple scenarios in [...]
Great information, i also want to learn financial modeling, how to learn
[...] Here is a free financial modeling course to help you get started. Spread some love,It makes you awesome! Tweet [...]
[...] Introduction to Financial Modeling [...]
[...] (if you don’t want to join Financial Modeling School, we are still friends Here is a free tutorial on excel financial modeling.) [...]
chando bhai i m tired for looking financial modeling detail but i cant find it anyway. so plz kindly send me full detail of financial modeling from beginning levelo to final. where i learn complete modeling procedure n order to become professional
You noob, you won`t become a professional like that, you need to do it on your own and learn as you go
@Nadeem Bhai,
The 6 links to the tutorial at the top of this post, build a small integrated financial model step by step. We are also running a complete 8 weeks course on financial modeling (similar to excel school). But that is almost 50% complete right now. If you want to join, you can join the next batch (probably starting in Jan/ Feb)
Feel free to get back, if you have any queries regarding the model/ steps in creating the same
[...] you do not wish to join our course, we are still cool. Here is a 6 part training on financial modeling & 2 part training on project finance. They are free, fresh and [...]
I want to learn how to build a financial model
Dear Lulama,
You can use this tutorial to learn to build a financial model. We also run a course on financial modeling and project finance modeling. The details can be obtained from:
http://chandoo.org/wp/financial-modeling/
You can consider joining that as well.
I would strongly encourage you to join the newsletter to get the updates about financial modeling and the next batch starting for the course.
I want to learn thorough excel and financial modelling thing !!! I am a chartered accountant..CAn you please suggest a detail syllabus that should be learn by me. Also suggest any classes that would cover everything in excel and financial modelling related things.. I stay in mumbai, so please suggest a class in mumbai or any books..byyee.. thanks ..
[...] Financial Modeling using Excel – 6 part tutorial [...]
Hi Vivek,
We do conduct the financial modeling course online as well as in Mumbai. We start with the basics of excel and build a completely integrated financial model in the class. For details you can look at:
http://chandoo.org/wp/financial-modeling/
or
http://www.edupristine.com/courses/financial-modeling/prisitne-fm-offering
Please describe to me various type of financial modela and demonstrate how a model can be build.
Regards,
Dear Immanuel,
This series of articles does exactly that. If you go step by step through the articles and create the excel sheets on your own, you will understand how to create an integrated financial model.
Alternatively, if you are looking for video sessions, you can consider joining our course:
http://chandoo.org/wp/financial-modeling/
It is expected to reopen somewhere in mid july.
[...] Excel Financial Modeling – 6 part tutorial [...]
Thanks Paramdeep this is great!
[...] Few months ago, we learned how to create a project valuation model in Excel as part of our series on Financial Modeling in Excel. [...]
Paramdeep Hi! A bit ignorant here, but let's ask anyway. Can I access "recorded" video sessions apart from following the step by step articles?
Thanks!
@Marius: Yes, we do have a training program with recorded video sessions. If you are interested, you can enroll for the same. The details can be obtained from: http://chandoo.org/wp/financial-modeling/
i want to know about the scope of financial modeling.i also want to know after doing financial modeling course what are the job prospect, like where i can found job so plz send me full detail of financial modeling from beginning levelo to final.
I am interested to join your Financial modelling class cos am involved in a new business. But I have a Macbook Air with Excel for Mac installed. Would that work with your program?
Dear Charsiew,
The complete training program is built using Excel 2007 with MS windows. Though there is nothing specific to Microsoft in the training. I think a few people have joined the program and are using MAC. If you write an email to me on paramdeep @ gmail.com, I can send you the email ids of those participants and you can get to know their feedback and difficulties in using the program.
This is great, when does the next batch start?
Dear Karan,
The course is in recorded format and you can register for the same as soon as you want.
Paramdeep, thanks. I'm venturing into financial modelling for the first time and from the little I've read from your website already, I'm sure I'll find your resources very useful; thanks once again.
Dear Seun,
I am glad that you are finding the resources to be useful. Feel free to send in comments with your feedback and further questions.
hie ppl...I jst wantd a small favour cn smone help me out in calculating EBITDA, along with its working, from wipros annual report 2011-2012, link - http://www.wipro.com/investors/annual-reports.aspx
...PLZ plz... i am having a submission tommorow.
[...] [Related: Introduction to Financial Modeling - 6 part tutorial] [...]
Nice article.
In designing Excel Financial Models I design the user interface as friendly as possible and structuring the input variables in the workflow of the client's operations so that they can flow through the impact of the input variables in Excel using buttons and macros and giving the model transparency.
Cheers
Arthur
[…] 4) http://chandoo.org/wp/2010/07/21/financial-modeling-introduction/ Chandoo has a great 6 step guide which goes through financial modeling from start to finish. Includes loads of pdfs to download including cheat sheets and case studies. Definitely a good place to start learning how to get to grips with financial modeling and Chandoo is well known for its Excel tutorials so if anything doesn’t make sense about the terms used to talk about formatting etc. then the answer can surely be found elsewhere on the website (and often already has hyperlinks added to skip straight to those sections as they are talked about within the financial modeling article!) […]
[…] Financial modeling using Excel (6 part tutorial) […]
Excellent site. Lots of helpful info here.
I am sending it to a few buddies ans also sharing in delicious.
And certainly, thanks in your effort!
[…] Introduction to Excel Financial Modeling […]
Another step to build any financial model is to do a financial analysis beforehand. This normally helps to design and come up with good projections.
Wow great information even I would like to learn financial modeling thanks for sharing this.
Looking For Full details On financial modelling. thank you for sharing this part!
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Nice collection of article, so inspiring and easy to read, keep posting thank you for sharing
Have a Nice Day!
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