Excel Spreadsheets Financial Functions

Below is the list of the 4 most useful ones.

Functions What it Does
FV Returns the future value of an investment

NPER Returns the number of periods for an investment

PMT Returns the periodic payment for an annuity

RATE Returns the interest rate per period of an annuity

The RATE Function

The question to which RATE brings an answer to is:
- What is the real interest rate if they ask me for a certain amount each period to
pay a loan?
A Descriptions
Number of periods (years, months,
1 48
weeks..etc)
2 $550 Periodic payment
3 $24,000 Total amount of loan
The balance left to pay at the end of
4 0 the period. If you omit this argument
Excel uses "0".
Payment made at the beginning of
the period (1) or at the end of the
period (0). If you omit this argument
5 0 Excel uses "0" saying that the
payment is made at the end of each
period which is usually the reality
when you borrow money.
The result with the formula using
the RATEfunction.
6 5.00% Note: the format of this cell must be
"Percentage" with any number of
decimals. In this example the number of
decimals is 2

Here is the formula in cell A6:

=RATE(A1,-A2,A3,A4,A5)*12
Notes on the formula: The payment argument is negative (-A2); If you use months
as periods and you want an annual rate you multiply by 12, if you use a years
as periods and you want an annual rate you don't multiply......; If you don't use the
"Percentage" format in cell A6 the result of this example will be 0.05; The formula
could also be =RATE(A1,-A2,A3)*12 the arguments in A4 and A5 being optional

The PMT Function

The question to which PMT brings an answer to is:
- If I borrow a certain amount of money and I want it repaid at the end of a certain
period of time what will be the periodic payment?
A Descriptions
The annual interest rate.
Note: the format of this cell must be
1 5.00% "Percentage" with any number of
decimals. In this example the number of
decimals is 2
Number of periodic payments
2 48
(years, months, weeks)
3 $24,000 Total amount of loan
The balance left to pay at the end of
4 0 the period. If you omit this argument
Excel uses "0".
Payment made at the beginning of
the period (1) or at the end of the
period (0). If you omit this argument
5 0 Excel uses "0" saying that the
payment is made at the end of each
period which is usually the reality
when you borrow money.
- The result with the formula using
6
$550.41 thePMT function.

Here is the formula in cell A6:

=PMT(A1/12,A2,A3,A4,A5)
Notes on the formula: If you don't use the "Percentage" format in cell A1
enter 0.05; If you use months as periods the rate must be divided by 12 (A1/12), if
you use weeks then you divide by 52 (A1/52), if there are 4 payments per year you
will divide the rate by 4 (A1/4)and if the payment is annual you don't divide the rate
argument (A1) ; The formula could also be =PMT(A1/12,A2,A3) the arguments in
A4 and A5 being optional; If you want the payment to show as a positive value add
a minus sign before the equal sign (=-PMT(A1/12,A2,A3,A4,A5))

The FV Function (Future value)

The question to which FV brings an answer to is:
- If I put a certain amount of money in the bank each month how much money will I
have saved at the end of a certain period of time?
A Descriptions
The annual interest rate.
Note: the format of this cell must be "Percentage"
1 5.00%
with any number of decimals. In this example the
number of decimals is 2
Number of periodic deposits (years, months,
2 48
weeks)
3 $550 Amount of periodic deposits
Beginning balance. If you omit this argument
4 $0
Excel uses "0".
Deposits made at the beginning of the period
(1) or at the end (0). If you omit this argument
5 1
Excel uses "0". In the case of the FV function
make sure that you enter "1".
- The result with the formula using
6
$29,279.68 the FV function.
Here is the formula in cell A6:
=FV(A1/12,A2,A3,A4,A5)
Notes on the formula: If you don't use the "Percentage" format in cell A1
enter 0.05; If you use months as periods the rate must be divided by 12 (A1/12), if
you use weeks then you divide by 52 (A1/52), if there are 4 payments per year you
will divide the rate by 4 (A1/4)and if the payment is annual you don't divide the rate
argument (A1) ; The formula could also be =FV(A1/12,A2,A3) the arguments in A4
and A5 being optional; If you want the RESULT to show as a positive value add a
minus sign before the equal sign (=-FV(A1/12,A2,A3,A4,A5))

The NPER Function

The question to which NPER brings an answer to is:
- How many months would it take me to repay a certain loan at a certain interest
rate if I pay a certain amount each month?
A Descriptions
The annual interest rate.
Note: the format of this cell must be
1 5.0% "Percentage" with any number of
decimals. In this example the number of
decimals is 2
2 $550 Periodic payment
3 $24,000 Total amount of loan
4 0 The balance left to pay at the end of
the period. If you omit this argument
 Excel uses "0".
Payment made at the beginning of
the period (1) or at the end (0). If
5 0
you omit this argument Excel uses
"0".
The result with the formula using
6 48.26 the NPERfunction.
Here is the formula in cell A6:
=NPER(D1/12,-D2,D3,D4,D5)

Notes on the formula: If you don't use the "Percentage" format in cell A1
enter 0.05; The second argument MUST BE NEGATIVE; If you use months
as periods the rate must be divided by 12 (A1/12), if you use weeks then you divide
by 52 (A1/52), if there are 4 payments per year you will divide the rate by 4
(A1/4)and if the payment is annual you don't divide the rate argument (A1) ; The
formula could also be =NPER(A1/12,A2,A3)the arguments in A4 and A5 being
optional;

There are 53 functions in the "Financial" category.

Functions What it Does
FV Returns the future value of an investment
NPER Returns the number of periods for an investment
PMT Returns the periodic payment for an annuity
RATE Returns the interest rate per period of an annuity
Returns the accrued interest for a security that pays
ACCRINT
periodic interest
Returns the accrued interest for a security that pays
ACCRINTM
interest at maturity
Returns the depreciation for each accounting period
AMORDEGRC
by using a depreciation coefficient
AMORLINC Returns the depreciation for each accounting period
Returns the number of days from the beginning of
COUPDAYBS
the coupon period to the settlement date
Returns the number of days in the coupon period
COUPDAYS
that contains the settlement date
Returns the number of days from the settlement
COUPDAYSNC
date to the next coupon date
Returns the next coupon date after the settlement
COUPNCD
date
 Returns the number of coupons payable between
COUPNUM
the settlement date and maturity date
Returns the previous coupon date before the
COUPPCD
settlement date
Returns the cumulative interest paid between two
CUMIPMT
periods
Returns the cumulative principal paid on a loan
CUMPRINC
between two periods
Returns the depreciation of an asset for a specified
DB
period using the fixed-declining balance method
Returns the depreciation of an asset for a specified
DDB period using the double-declining balance method
or some other method you specify
DISC Returns the discount rate for a security
Converts a dollar price, expressed as a fraction, into
DOLLARDE
a dollar price, expressed as a decimal number
Converts a dollar price, expressed as a decimal
DOLLARFR
number, into a dollar price, expressed as a fraction
Returns the annual duration of a security with
DURATION
periodic interest payments
EFFECT Returns the effective annual interest rate
Returns the future value of an initial principal after
FVSCHEDULE
applying a series of compound interest rates
INTRATE Returns the interest rate for a fully invested security
Returns the interest payment for an investment for a
IPMT
given period
Returns the internal rate of return for a series of
IRR
cash flows
Returns the interest paid during a specific period of
ISPMT
an investment
Returns the Macauley modified duration for a
MDURATION
security with an assumed par value of $100
Returns the internal rate of return where positive
MIRR and negative cash flows are financed at different
rates
NOMINAL Returns the annual nominal interest rate
 Returns the net present value of an investment
NPV based on a series of periodic cash flows and a
discount rate
Returns the price per $100 face value of a security
ODDFPRICE
with an odd first period
Returns the yield of a security with an odd first
ODDFYIELD
period
Returns the price per $100 face value of a security
ODDLPRICE
with an odd last period
Returns the yield of a security with an odd last
ODDLYIELD
period
Returns the payment on the principal for an
PPMT
investment for a given period
Returns the price per $100 face value of a security
PRICE
that pays periodic interest
Returns the price per $100 face value of a
PRICEDISC
discounted security
Returns the price per $100 face value of a security
PRICEMAT
that pays interest at maturity
PV Returns the present value of an investment
Returns the amount received at maturity for a fully
RECEIVED
invested security
Returns the straight-line depreciation of an asset for
SLN
one period
Returns the sum-of-years' digits depreciation of an
SYD
asset for a specified period
TBILLEQ Returns the bond-equivalent yield for a Treasury bill
Returns the price per $100 face value for a Treasury
TBILLPRICE
bill
TBILLYIELD Returns the yield for a Treasury bill
Returns the depreciation of an asset for a specified
VDB
or partial period using a declining balance method
Returns the internal rate of return for a schedule of
XIRR
cash flows that is not necessarily periodic
Returns the net present value for a schedule of
XNPV
cash flows that is not necessarily periodic
 Returns the yield on a security that pays periodic
YIELD
interest
Returns the annual yield for a discounted security
YIELDDISC
for example, a Treasury bill
Returns the annual yield of a security that pays
YIELDMAT
interest at maturity