Key Excel Functions

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Financial Modeling

Key Excel FunctionsThis sections walks you through important excel functions that are frequently used in financial

modeling. Its important to try these out in excel.

Financial Modeling


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Excel Functions

What are Excel Functions ?

Excel Functions are built-in formulas based on predefined logic thatmakes it easy to calculate the output for a given data.

How to insert a Function?

Click Formulas tab in

Excel. Within the Formulas tab

click Insert Function.

The dialog box shown onthe right would appear on

the screen. Desired function type can

be selected from the dropdown list.

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Excel Functions-Example

Find the total sales of the following particulars using excel:

Particulars SalesIron Rods 105288

Iron Gurders 452278

Steel Sheets 265887

Iron Plates 248566

How to insert a Function?

Click Formulas tab in Excel.

Within the Formulas tab click

Insert Function. In the dialog box select Sum

function.

Insert the numbers to be

added in the text box of thesum dialog box.

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Find the total sales of the following particulars using excel:

Insert the cell references

whose numbers is to be

added.

Excel Functions-Example

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Excel Functions

Excel Functions Functions types used in Financial Modeling

Excel

Functions

Financial

Date &Timing

Logical

Lookup &Reference

Math &Trig

Statistical

Text

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Excel Functions

o Lookup & References

Choose

Offset

Lookup

VLookup

HLookup

Match

o Sum

Sum

Sumif

Sumifs

Sumproduct

Average

Averageifs

o Count

Count

Countif

Countifs

Counta

CountBlank

o If statement & its

alternative

If

And

Or

Max

Min

Commonly used Functions in Financial Modeling

o Dates

Year

Month

Day

Date

Date360

Edate

o Financial

PV

FV

PMT

Rate

NPER

IPMT

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Excel Functions

Lookup and References

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Excel Functions

Sum functions

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Excel Functions

Count functions

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Excel Functions

If statement and its Alternatives

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Excel Functions

Financial Functions

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CHOOSE Function:

Find the sales of the particular - Iron Rods:

OFFSET Function:

Find the sales of the fourth particular:

Formula:=CHOOSE(2,C2,C2:C5)

Understanding of formula:

2nd figure from C2 from the range

C3:C5.

Excel Functions

Formula:=OFFSET(B1,4,1,1,1)


In column B, get the value of particular in 4th row and 1

column from B.

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Lookup Function:

Find the sales of the Steel Sheets:

Match Function:

Find the sales less than 150000:

Formula:=LOOKUP("Steel Sheets",B2:B5,C2:C5)


Looks up Steel Sheets in column B, and returns the value

from column C that's in the same row (265887).

Excel Functions

Formula:=MATCH(150000,C2:C5,1)


In column C, get the row whose value is less than 150000.

Output:

113



Formula:


Looks for the sales value of fifth row i.e. for Iron Plates.

Excel Functions

HLookup Function:

Find the sales value of the fifth row:

VLookup Function:

Find the sales values of Iron Plates:

Formula:=VLOOKUP(B5,B1:C5,2,FALSE)


Looks up Sales value of Iron Plates in column C, from the

range of particulars and sales.

=HLOOKUP(C1,B1:C5,5,FALSE)

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Formula:


Add the numbers in the range

Excel Functions

Sum Function:

Find the sum of sales value:

SumIf Function:

Find the sum of sales value if sales is > 250000:

Formula:


Adds Sales of Iron gurders and Steel Sheets as there sales

value is > than 250000. Output is 718165.

=SUM(C2:C5)

=SUMIF(C2:C5,">250000",C2:C5)

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Sumifs Function:

Find the sum of sales value:

SumProduct Function:

Find the profit :

Formula:


Adds Sales of Steel Sheets and Iron Plate as there sales

value is > 150000 and < than 270000. Output is 514453.

Excel Functions

Formula:


Multiplies value of column C with value of column D

respectively and add them.

=SUMIFS(C2:C5,C2:C5,">150000",C2:C5,"


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Average Function:

Find the Average of sales value:

Averageifs Function:

Find the profit :

Formula:=AVERAGE(B2:B5)


Averages the data in range.

Excel Functions

Formula:=AVERAGEIFS(B2:B5,B2:B5,">150000",B2:B5,"


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Count Function:

Find the number of particulars:

CountIf Function:

Find the number of particulars where sales is > 150000:

Formula:=COUNT(B2:B5)


Counts number cells containing non-zero numbers in the

range.

Excel Functions

Formula:=COUNTIF(B2:B5,">150000")


Counts number of particulars whose sales value is > 150000

in the range.

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CountIfs Function:

Find the number of particulars where sales is > 150000 and than 150000","Sales < than 150000")


Checks whether sales of Iron Rods is > or < than 150000.

Excel Functions

Formula:

=MAX(B2:B5)Understanding of formula:

Gets the maximum value among the range.

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Min Function:

Find the minimum sales value:

PV Function: PV(rate,nper,pmt,fv,type)

Find the PV of insurance premium paid where premium is 1000,

risk free rate is 10% and time is 5 years:

Formula:=MIN(B2:B5)


Gets the minimum value among the range.

Excel Functions

Formula:

=PV(B3,B4,-B2,0,0)

Output:

3,790.79

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FV Function: FV(rate,nper,pmt,pv,type)

Find the FV of insurance premium paid where premium is 1000,

risk free rate is 10% and time is 5 years:

PMT Function: PMT(rate,nper,pv,fv,type)

Find the amount to be invested every year to get an amount of

6105.10 at the end of 5 years and risk free rate is 10%:

Excel Functions

Formula:

=FV(B3,B4,-B2,0,0)

Output:

6,105.10

Formula:

=PMT(B3,B4,0,-B2,0)

Output:

1000

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NPER Function: NPER(rate, pmt, pv, fv, type)

Find the number of years of investment to get 6105.10 by making

a payment of 1000 annually and risk free rate is 10%:

RATE Function: RATE(nper,pmt,pv,fv,type,guess)

Find the investment rate at which 1000 invested annually for 5

years would yield 6105.10:

Excel Functions

Formula:

=NPER(B3,-B4,0,B2,0)

Output:

5

Formula:

=RATE(B3,-B4,0,B2,0,0)

Output:

10%

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Key Excel Functions