Basic Finance in Excel

I've included an Excel spreadsheet that you can use to answer some relatively simple finance problems in Excel. I do recommend you check out the book on our home page to view some of our more complicated work. You can download the Excel sheet below.

Some Excel Financial Functions.xlsx

Download XLSX • 19KB

Basically, the sheet goes over valuing annuities (which are periodic payments such as a mortgage or certain insurance products) and depreciation, which is the value assets lose over time and is taken off of EBITDA (gross profit) to get to EBIT (operating profit).

Present value is the value of a sum in today's terms (for example, taking out a $10,000 loan today). The monthly payments here follow from the present value payment chart and I also show the calculations for interest and principal payments. Future value is the expected value of some cash flows in the future (such as an investment portfolio).

Straight-line depreciation is the most common depreciation method and is just linear decreases in value, but some accountants will use the other methods. Sum of Years digits is not IFRS compliant, and some other methods exist. Fortunately, they are all relatively simple.

I'll post some other Excel tutorials in the future.

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