Financial Calculator Formulas

Build sophisticated financial calculators with these Excel formulas. Calculate loan payments, investment returns, and more.

💰

Monthly Loan Payment

Calculate monthly payments for loans and mortgages

Formula:

=PMT(rate/12, nper*12, pv)

Example:

=PMT(5%/12, 30*12, -250000)

Result: $1,342.05 per month

Explanation:

This formula calculates the monthly payment for a $250,000 loan at 5% annual interest rate over 30 years. The rate is divided by 12 for monthly payments, and the period is multiplied by 12 to convert years to months. The loan amount is negative because it's money you're borrowing.

📈

Investment Growth Calculator

Calculate how much your investments will grow over time

Formula:

=FV(rate/12, nper*12, -pmt, -pv)

Example:

=FV(7%/12, 20*12, -500, -10000)

Result: $260,513.68 after 20 years

Explanation:

This calculates the future value of an investment with a $10,000 initial deposit and $500 monthly contributions over 20 years at 7% annual return. Both the initial amount and monthly payments are negative because they're cash outflows. The result shows you'll have over $260,000 after 20 years.

📊

Return on Investment (IRR)

Calculate the internal rate of return for investments

Formula:

=IRR(values, [guess])

Example:

=IRR({-50000, 15000, 18000, 22000, 25000})

Result: 25.69% annual return

Explanation:

This calculates the annualized return rate for an investment where you put in $50,000 initially and receive returns of $15,000, $18,000, $22,000, and $25,000 over four years. The 25.69% IRR shows this is a strong investment with excellent returns.

Need a Custom Financial Formula?

Our AI can generate any financial calculator formula tailored to your specific needs.