Finance and investment formulas

Excel Financial Functions Guide

Use Excel financial functions for loans, investments, net present value, and internal rate of return with practical formula examples.

Core financial formulas

  • Use PMT for loan payments, FV for future value, and PV for present value.
  • Use NPV and IRR to compare investment scenarios and project returns.
  • Keep rate and period units consistent — monthly rate with monthly periods, annual rate with annual periods.

Avoid finance formula errors

  • Confirm cash outflows and inflows use consistent signs across the model.
  • Use DATE or EDATE when payment schedules depend on month-based timelines.
  • Document assumptions so NPV and IRR outputs can be audited later.