Financial formulas for Microsoft Excel can improve your analysis of your investments and loans, making them useful in personal and professional finance. You can use these formulas in combination with one another for further insights. Become a better financial analyst with these formulas:

## PMT for Loan Payment Calculations

The payment (PMT) formula is one of the most common for financial analysis. It calculates loan payments based on the loan’s value and the period in which the loan will be paid. This formula provides the total payment, including principal and interest. Its syntax is:

=PMT(rate, number_of_periods, present_value)

## IPMT for Interest on Fixed Debt

The interest payment (IPMT) formula is similar to the PMT formula but calculates the portion of the fixed debt payment based on the loan’s interest. You can combine the IPMT and PMT formulas to calculate each period’s principal payments. Its syntax is:

=IPMT(rate, current_period_number, total_number_of_periods, present_value)

## FV for the Future Value of Investments

If you want to know how much money your investment will give you, use the future value (FV) formula. It considers the return on investment based on its starting balance, regular payments, and compounding interest rate. Its syntax is:

=FV(rate, number_of_periods, payments, starting_value, type)

## XNPV for Valuation Analysis

Calculate the net present value (NPV) of cash flows based on specific dates with the XNPV formula. Financial professionals use this formula to determine a company or asset’s worth. Its syntax is:

=XNPV(discount_rate, cash_flows, dates)

## XIRR for Internal Rate of Return

The internal rate of return (IRR) calculation determines the IRR for cash flows within specific dates. This formula is similar to the IRR formula but offers the advantage of including time periods in the calculation. Its syntax is:

=XIRR(cash_flows, dates)

## MIRR for Modified Internal Rate of Return

The modified internal rate of return (MIRR) formula is similar to XIRR. This version is modified to track cash flow from one investment that is invested elsewhere. The MIRR formula provides a more realistic look at return rates with changing investment strategies. Its syntax is:

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=MIRR(cash_flows, cost_of_borrowing, reinvestment_rate)

## EFFECT for Effective Annual Interest Rate

Calculate the effective annual interest rate for nonannual compounding with the EFFECT formula to perform data analysis of finances. Those who lend and borrow money use this formula to determine their true interest rates. Its syntax is:

=EFFECT(interest_rate, number_of_periods_per_year)