All articles with 'financial formulas' Tag
Lets talk about how we can use Excel to calculate Compounded Annual Growth Rate (CAGR for short).
What is CAGR? What does it signify?
Let us say you are the CEO of ACME Inc. You have been selling various widgets since 2009. In your latest annual report you want to tell your shareholder at what rate you have been growing ACME Inc. sales. The figure are,
- 2009 – $150 Mn
- 2010 – $125 Mn
- 2011 – $160 Mn
- 2012 – $174 Mn
- 2013 – $195 Mn
- 2014 – $210 Mn
Now, if you see the growth rates, they are all over the place. Right from -16.67% to 28%. But you want to report a single annual growth rate.
This is where CAGR (Compounded Annual Growth Rate) comes handy.Continue »
Last time we had discussed the use of SumProduct() to ease your life for calculation of consolidated revenues and depreciation. This time we would be using the sum function! Yes you heard it right – The Sum function.
But we would use the Sum function with a small trick! We would use it to calculate running cumulative sum! And believe me, you would need this function so many times – to calculate accumulated depreciation, cumulative debt, Profits to Retained Earnings and almost all the accounts that would consolidate into the balance sheet.Continue »
Chandoo.org is all about simplifying life using Excel. When I first started visiting the site, I was amazed at the amount of information on the site, which made your life easier. My next few posts would be about excel functions which can make your life for Financial Modeling easier! These are simple examples that you […]Continue »
In the second part of our series on project finance using Excel, Paramdeep tells us how to model “interest during construction” in real estate and construction type of projects. We take a case of hospital construction and learn how to calculate the IDC using circular references.
You can also download both blank and completed model so that you can test the skills.Continue »
This is a guest post written by Paramdeep from Pristine. Chandoo.org runs Financial Modeling School program in partnership with Pristine Careers. Visit Financial Modeling School to learn more and sign-up for our newsletter.
It’s been long time since we interacted on Chandoo.org. Actually I was very busy teaching the 105 awesome students for financial modeling in Excel. We all worked together to create some easy and some complex financial models. I found the journey to be quite exciting and enriching (From the feedback that I got, my students too didn’t find it bad either 😉 )
During the interaction, I found that a lot of students were looking for financial modeling around the project financing as well. So we thought why not introduce financial modeling for project finance.
In this post I will speak about some of the key aspects of a project finance model and why it can be different from modeling a normal company.Continue »
This is a guest post written by Paramdeep from Pristine. Chandoo.org is partnering with Pristine to bring an excel financial modeling online training program for you. This is Part 6 of 6 on Financial Modeling using Excel In this tutorial we are going to learn how to build assumptions & input sheets in our excel […]Continue »
Today we will build a mortgage payment calculator (and amortization schedule) using excel. But we will not build a boring excel sheet, we will build a mortgage calculator that is easy to play with.
A mortgage payment is a monthly installment that you pay towards a loan. Any mortgage loan will typically have, (1) loan amount, (2) duration of the loan in years, (3) interest rate per year
Given these 3 parameters, we can easily determine the monthly installment amount (this will be the same amount for all months during loan tenure)
We are going to use Excel’s form controls (more on this below) to build a mortgage payment calculator like this.Continue »
Excel is very good for keeping track of your investments. Due to its grid nature, you can easily create a table of all the mutual fund holdings and monitor the latest NAVs (Net Asset Values) to see how your investments are doing. A while back we have posted a file on tracking mutual funds using excel. Today we are going to release an upgrade for that file.
Read the rest of this post to understand how this template works and download the free template.Continue »
In this installment of spreadcheats, we will learn how to use goal seek feature of excel. We will build a retirement savings calculator using excel. We will learn to use Excel’s FV() formula to estimate the corpus that can be accumulated by saving fixed amount every month.Continue »