Here are the top excel financial formulas that will help you productively use the office application
(i) XNPV: The XNPV function in Excel calculates the net present value of a series of cash flows at irregular intervals. It requires three arguments: the discount rate, an array of cash flows, and an array of corresponding dates. The formula syntax is:
excel
=XNPV(rate, values, dates)
- rate: The discount rate for the investment.
- values: An array of cash flows that correspond to the dates.
- dates: An array of dates that correspond to the cash flows.
Make sure the dates are in chronological order, and the first cash flow corresponds to the first date. The result is the net present value of the investment.
(ii) XIRR: The XIRR function in Excel is used to calculate the internal rate of return for a series of cash flows at irregular intervals. Its formula syntax is:
excel
=XIRR(values, dates, [guess])
- values: An array of cash flows that correspond to the dates.
- dates: An array of dates that correspond to the cash flows.
- [guess]: (Optional) An initial guess for the internal rate of return. If omitted, Excel uses 0.1 (10%) as the default.
Make sure the dates are in chronological order, and the first cash flow corresponds to the first date. The function returns the internal rate of return for the investment.
(iii) MIRR
(iv) PMT
(v) EFFECT
(vi) IPMT
(vii) DB
(viii) RATE