What is VBA & Writing your First VBA Macro in Excel [VBA Crash Course Part 1 of 5]

Share

Facebook
Twitter
LinkedIn

This article is part of our VBA Crash Course. Please read the rest of the articles in this series by clicking below links.

Introduction to VBA & Excel Macros - What are they & Writing your First Macro using Excel

  1. What is VBA & Writing your First VBA Macro in Excel
  2. Understanding Variables, Conditions & Loops in VBA
  3. Using Cells, Ranges & Other Objects in your Macros
  4. Putting it all together – Your First VBA Application using Excel
  5. My Top 10 Tips for Mastering VBA & Excel Macros

Introduction to Excel VBA

Everyone has a language. My mother tongue is Telugu. But I also speak Hindi, English and Cutish (that is the language my 2 year old kids speak). You may be fluent in English, Spanish, French, German or Vietnamese.

Just like you and I, Excel has a language too, the one it can speak and understand. This language is called as VBA (Visual Basic for Applications).

When you tell instructions to Excel in this VBA language, Excel can do what you tell it. Thus enabling you to program Excel so that you can automate a boring report, format a big&ugly chart, clean-up some messy data or just play some random noises.

What is a Macro then?

A macro is nothing but a set of instructions you give Excel in the VBA language.

Writing Your First Macro

Note: If you are new computer programming, watch our Introduction to Programming Video before proceeding.

In order to write your first VBA program (or Macro), you need to know the language first. This is where Excel’s tape recorder will help us.

Tape Recorder?!?

Yes. Excel has a built-in tape recorder, that listens and records everything you do, in Excel’s own language, ie VBA.

Since we dont know any VBA, we will use this recorder to record our actions and then we will see recorded instructions (called as code in computer lingo) to understand how VBA looks like.

Our First VBA Macro – MakeMeRed()

Now that you understand some VBA jargon, lets move on and write our very first VBA Macro. The objective is simple. When we run this macro, it is going to color the currently selected cell with Red. Why red? Oh, red is pretty, bright and awesome – just like you.

This is how our macro is going to work when it is done.

Demo of your first macro using Excel VBA - A button to make any cell red

6 steps to writing your first macro

I don’t see Developer Ribbon. Now what? 

If you do not see Developer ribbon, follow these instructions.

Excel 2007:

1. Click on Office button (top left)
2. Go to Excel Options
3. Go to Popular
4. Check “Show Developer Tab in Ribbon” (3rd Check box)
5. Click ok.

Excel 2010:

1. Click on File Menu (top left)
2. Go to Options
3. Select “Customize Ribbon”
4. Make sure “Developer tab” is checked in right side area
5. Click ok.

Step 1: Select any cell & start macro recorder

This is the easiest part. Just select any cell and go to Developer Ribbon & click on Record Macro button.

Recording a Macro using Excel Macro Recorder - Crash Course in Excel VBA

Step 2: Give a name to your Macro

Specify a name for your macro. I called mine MakeMeRed. You can choose whatever you want. Just make sure there are no spaces or special characters in the name (except underscore)

Click OK when done.

Step 3: Fill the current cell with red color

This is easy as eating pie. Just go to Home ribbon and fill red color in the current cell.

Step 4: Stop Recording

Now that you have done the only step in our macro, its time to stop Excel’s tape recorder. Go to Developer ribbon and hit “stop recording” button.

Stopping Excel's Macro Recorder - Excel VBA Crash Course

Step 5: Assign your Macro to a button

Now go to Insert ribbon and draw a nice rectangle. Then, put some text like “click me to fill red” in it.

Then right click on the rectangle shape and go to Assign Macro. And select the MakeMeRed macro from the list shown. Click ok.

Assigning Macros to Buttons - Excel VBA Crash Course

Step 6: Go ahead and play with your first macro

That is all. Now, we have linked the rectangle shape to your macro. Whenever you click it, Excel would drop a bucket of red paint in the selected cell(s).

Go ahead and play with this little macro of ours.

Understanding the MakeMeRed Macro Code

Now that your first macro is working, lets peek behind the scenes and understand what VBA instructions are required to fill a cell with red.

To do this, right click on your current sheet name (bottom left) and click on View code option. (You can also press ALT+F11 to do the same).

This opens Visual Basic Editor – a place where you can view & edit various VBA instructions (macros, code) to get things done in Excel.

Understanding the Visual Basic Editor:

Before understanding the MakeMeRed macro, we need to be familiar with VBE (Visual Basic Editor). See this drawing to understand it.

Understanding Excel Visual Basic Editor - Crash Course in Excel VBA

Viewing the VBA behind MakeMeRed

  1. Select Module 1 from left side area of VBE (called as Project Explorer).
  2. Double click on it to open it in Editor Area (top right, big white rectangle)
  3. You can see the VBA Code behind MakeMeRed

If you have followed the instructions above, your code should look like this:

Sub MakeMeRed()
'
' MakeMeRed Macro
'
With Selection.Interior
.Pattern = xlSolid
.PatternColorIndex = xlAutomatic
.Color = 192
.TintAndShade = 0
.PatternTintAndShade = 0
End With
End Sub

So much for a simple red paint!!!

Well, what can I say, Excel is rather verbose when it is recording.

Understanding the MakeMeRed VBA Code

Lets go thru the entire Macro code one line at a time.

  • Sub MakeMeRed(): This line tells Excel that we are writing a new set of instructions. The word SUB indicates that the following lines of VBA are a sub-procedure (or sub-routine). Which in computer lingo means, a group of related instructions meant to be followed together to do something meaningful. The Sub-procedure ends when Excel sees the phrase “End Sub”
  • Lines starting with a single quote (‘): These lines are comments. Excel will ignore anything you write after a single quote. These are meant for your understanding.
  • With Selection.Interior: While filling a cell with Red color may seem like one step for you and I, it is in fact a lot of steps for your computer. And whenever you need to do a lot of operations on the same thing (in this case, selected cell), it is better to bunch all of them. This is where the WITH statement comes in to picture. When Excel sees With Seletion.Interior, Excel is going to think, “ok, I am going to do all the next operations on Selected Cell’s Interior until I see End With line
  • Lines starting with .: These are the lines that tell Excel to format the cell’s interior. In this case, the most important line is .Color = 192 which is telling Excel to fill Red color in the selected cell.
  • End With: This marks the end of With block.
  • End Sub: This marks the end of our little macro named MakeMeRed().

Few Tips to understand this macro better:

Once you are examining the macro code, here are a few ways to learn better.

  • Change something: You can change almost any line of the macro to see what happens. For example, change .color = 192 to .color = 62 and save. Then come back to Excel and run your macro to see what happens.
  • Delete something: You can remove some of the lines in the macro to see what happens. Remove the line .PatternColorIndex = xlAutomatic and run again to see what happens.

Download Example Workbook to learn VBA

Click here to download the example workbook with MakeMeRed Macro.
Excel 2003 Compatible Version here.
Play with the code & understand this better.

What Next – Understanding Variables, Conditions & Loops

In the part 2 of this tutorial, Learn about variables, conditions & loops – basic programming structures of VBA.

Do you write VBA Code? Share your experience?

Thanks to my college education & job experience. I am trained to be a programmer. So I find VBA quite intuitive and easy to use. But that may not be the case for many of you who latch on to VBA without any formal education.

I would like to know how you learn VBA and what experiences you had when you wrote that first macro. Please share using comments.

Join Our VBA Classes

We run an online VBA (Macros) Class to make you awesome. This class offers 20+ hours of video content on all aspects of VBA – right from basics to advanced stuff. You can watch the lessons anytime and learn at your own pace. Each lesson offers a download workbook with sample code. If you are interested to learn VBA and become a master in it, please consider joining this course.

Click here to learn more and Join our VBA program.

Facebook
Twitter
LinkedIn

Share this tip with your colleagues

Excel and Power BI tips - Chandoo.org Newsletter

Get FREE Excel + Power BI Tips

Simple, fun and useful emails, once per week.

Learn & be awesome.

Welcome to Chandoo.org

Thank you so much for visiting. My aim is to make you awesome in Excel & Power BI. I do this by sharing videos, tips, examples and downloads on this website. There are more than 1,000 pages with all things Excel, Power BI, Dashboards & VBA here. Go ahead and spend few minutes to be AWESOME.

Read my storyFREE Excel tips book

Overall I learned a lot and I thought you did a great job of explaining how to do things. This will definitely elevate my reporting in the future.
Rebekah S
Reporting Analyst
Excel formula list - 100+ examples and howto guide for you

From simple to complex, there is a formula for every occasion. Check out the list now.

Calendars, invoices, trackers and much more. All free, fun and fantastic.

Advanced Pivot Table tricks

Power Query, Data model, DAX, Filters, Slicers, Conditional formats and beautiful charts. It's all here.

Still on fence about Power BI? In this getting started guide, learn what is Power BI, how to get it and how to create your first report from scratch.

15 Responses to “Modeling Interest During Construction (IDC) – Excel Project Finance”

  1. Terry says:

    Thanks again for a very helpful post.
    I had a similar problem when trying to model a balance sheet and profit and loss projection. The problem was that interest expense (in P&L) was dependent on a cash shortfall (in BS) which had to be funded. The cash shortfall depended on how much interest was paid, so the mutual dependency made a circular reference.
    I addressed it with a macro that calculated interest outside of the P&L, then pasted the calculated amount into the P&L as a value. The model was out of balance, but by repeating the pasting and calculating loop the imbalance reduced to zero. It was a bit messy, and had to be repeated every time a line changed - but it worked.
    If I have to do it again I'll read this article again first and see if it can be done more elegantly.

  2. Tristan says:

    Hi,

    The use of a circular reference can be avoided in this case. Just make use of the geometric sum to calculate the interest required. I’ll walk through the example from the spreadsheet.
    First calculate the cash needed each year without the interest expense. So you year 1 you need 55 Mn, year 2 105 Mn, and 190 Mn for year 3. The total amount to borrow for year 1 is then (50 Mn)/(1-interest_rate) = (50)/(1-0.1). For years 2 and subsequent the amount borrowed is the cash needed in that year plus the interest_rate times the amount already borrowed. For year 2 (105 + interest_rate * sum(previous debt raised))/(1-interest_rate)=(105+0.1*61.1)/(1-0.1).
    This process avoids the need for a circular reference, and makes the calculation more stable.

    Thanks,
    Tristan

    • Suneel says:

      The question is for the year 1 in your case, the amount works out to 45 mn. However in the year 2 you have applied the loan amount as 61.1 mn.

      Am I missing something ! Please help !

  3. Yogesh P says:

    very helpful information!!!

    using circular references and to make model more stable we can use combination of "IF" and "ISERROR" functions. i.e
    =if(iserror(formula1),"",(formula1))

    this formula will return blank value if there is any error otherwise give the result required.

    I usually use this in my models and it makes them very stable......

    🙂 🙂 🙂

  4. @Terry: Thats right. Exactly same problem is seen in Interest - Cash cycle in P&L and Cash Flow statement as well. In our trainings on financial modeling in excel, we demonstrate using both the circular loops as well as the macros to take care of this problem. Circular loops have their own pitfalls. If the model enters into a state of error, the error percolates!
    @Tristan: Thanks for pointing out. I agree with you that if circular loops can be avoided, they should be avoided.
    @Yogesh: This is one way of avoiding the problem. Although circular loops have another problem that they make your sheet slower. Each time, there is a change in the sheet, all the calculations are redone. So if they can be avoided, they should be avoided.

    Please note that this was an example (a large one indeed) and I didn't have space to speak about the pitfalls of this approach! I just wanted to illustrate an approach and am glad that some of you found it useful!

  5. I think while posting, there is an error in the images! The last image should be flipped with the one that is posted in step VII!

  6. MarselR says:

    I think you can try the following simple solution given by Microsoft itself to make the circular works:

    Windows: Excel Options -> Formulas -> Put a tick on "Enable iterative calculation"
    Mac: Excel -> Preference -> Calculation ->Put a tick on "Limit iteration"

    You can change the maximum number of calculation iterations as well as the maximum changes which iteration stops for goal seeking or for resolving circular references based on the number you type in the maximum change box.

    Thank you.

  7. Vinay says:

    Hey All

    I heard that we can take care of the circularity with the help of macro for IDC. Can anybody help on the steps to construct the macro for the same.

    Regards
    Vinay

    • Hi Vinay,
      If you look closely, you are essentially copying the values from the interest calculation to the IDC in project cost.
      Basically you can record a macro, that takes the values from interest and pastes special the values in IDC row in project cost.
      Then you can run that recorded code in a for loop.

      Hope this helps.

      • Vinay says:

        Thanks Param for reply.

        But before calculating interest, i need to provide for Upfront Equity and Equity, which are essentially part of total project cost. Hence, i need to put in Upfront Equity and Equity to calculate the IDC which is again hitting the total project cost.

        Bit of confused on how to remove this circular reference.

        Regards
        Vinay

  8. M says:

    Wow, this was a brilliantly simple post. I was looking online for a while before I found this page. Never seen this been explained so beautifully yet so crisply before. Thanks for saving my ass at work! (i'm relatively new to finance + modeling)
     

  9. áo s? mi nam hàn qu?c ? hà n?i says:

    I'm not sure why but this web site is loading very slow for
    me. Is anyone else having this issue or is it a problem on my end?
    I'll check back later and see if the problem still exists.

  10. Pravin Khetan says:

    I have been reading your blog since my college days. Today, I'm writing just to say thanks.

  11. Engr. Fida Hussain says:

    We have calculated Financial Rate of return of a hydropower projects, and the observer has raised an observation regarding Total Project cost with IDC Rs. 8616.01 million (PKR) and with-out IDC 8352.46 million (PKR). How does the Financial nalysis be calculated on the basis of with-out IDC Or With IDC?????
    Please helpf. if possible to spare some time.

Leave a Reply