Excel formula for sum of income over multiple years adjusted for inflation












0














I have the income X, and the number of years in the future Y, and the inflation Z. I can calculate the compound interest simply by CI(Y) = X*(1+Z)^Y for any given year, but how can I construct a formula that adds each years income together for a total sum?



Ex)



X = 1000
Y = 3
Z = 5%
CI(0) = $1000
CI(1) = $1050
CI(2) = $1102,5
CompoundInterestSum(3) = $3152,5


I could do this in code recursively, but I'd like to know the cleaner formula that I can use in Excel. Thanks!










share|improve this question
























  • There are a lot of formulas -> financial in excel that can accomplish what you desire. However, it looks like CI(1) should be 1050, etc. In otherwords, C(0) should be 1000. Also, your calculation is the principal and interest. therefore your CompoundInterestSum(3) is overstated. If you think not, then I would like to invest in your company...
    – gns100
    Dec 12 at 17:48










  • Thanks! You are correct and I've updated to start at a zero-based index. What do you mean by overstated in the example? My actual scenario is calculating total returns on solar power.
    – jsmars
    Dec 13 at 10:52
















0














I have the income X, and the number of years in the future Y, and the inflation Z. I can calculate the compound interest simply by CI(Y) = X*(1+Z)^Y for any given year, but how can I construct a formula that adds each years income together for a total sum?



Ex)



X = 1000
Y = 3
Z = 5%
CI(0) = $1000
CI(1) = $1050
CI(2) = $1102,5
CompoundInterestSum(3) = $3152,5


I could do this in code recursively, but I'd like to know the cleaner formula that I can use in Excel. Thanks!










share|improve this question
























  • There are a lot of formulas -> financial in excel that can accomplish what you desire. However, it looks like CI(1) should be 1050, etc. In otherwords, C(0) should be 1000. Also, your calculation is the principal and interest. therefore your CompoundInterestSum(3) is overstated. If you think not, then I would like to invest in your company...
    – gns100
    Dec 12 at 17:48










  • Thanks! You are correct and I've updated to start at a zero-based index. What do you mean by overstated in the example? My actual scenario is calculating total returns on solar power.
    – jsmars
    Dec 13 at 10:52














0












0








0







I have the income X, and the number of years in the future Y, and the inflation Z. I can calculate the compound interest simply by CI(Y) = X*(1+Z)^Y for any given year, but how can I construct a formula that adds each years income together for a total sum?



Ex)



X = 1000
Y = 3
Z = 5%
CI(0) = $1000
CI(1) = $1050
CI(2) = $1102,5
CompoundInterestSum(3) = $3152,5


I could do this in code recursively, but I'd like to know the cleaner formula that I can use in Excel. Thanks!










share|improve this question















I have the income X, and the number of years in the future Y, and the inflation Z. I can calculate the compound interest simply by CI(Y) = X*(1+Z)^Y for any given year, but how can I construct a formula that adds each years income together for a total sum?



Ex)



X = 1000
Y = 3
Z = 5%
CI(0) = $1000
CI(1) = $1050
CI(2) = $1102,5
CompoundInterestSum(3) = $3152,5


I could do this in code recursively, but I'd like to know the cleaner formula that I can use in Excel. Thanks!







microsoft-excel worksheet-function mathematica






share|improve this question















share|improve this question













share|improve this question




share|improve this question








edited Dec 13 at 10:50

























asked Dec 12 at 17:20









jsmars

15528




15528












  • There are a lot of formulas -> financial in excel that can accomplish what you desire. However, it looks like CI(1) should be 1050, etc. In otherwords, C(0) should be 1000. Also, your calculation is the principal and interest. therefore your CompoundInterestSum(3) is overstated. If you think not, then I would like to invest in your company...
    – gns100
    Dec 12 at 17:48










  • Thanks! You are correct and I've updated to start at a zero-based index. What do you mean by overstated in the example? My actual scenario is calculating total returns on solar power.
    – jsmars
    Dec 13 at 10:52


















  • There are a lot of formulas -> financial in excel that can accomplish what you desire. However, it looks like CI(1) should be 1050, etc. In otherwords, C(0) should be 1000. Also, your calculation is the principal and interest. therefore your CompoundInterestSum(3) is overstated. If you think not, then I would like to invest in your company...
    – gns100
    Dec 12 at 17:48










  • Thanks! You are correct and I've updated to start at a zero-based index. What do you mean by overstated in the example? My actual scenario is calculating total returns on solar power.
    – jsmars
    Dec 13 at 10:52
















There are a lot of formulas -> financial in excel that can accomplish what you desire. However, it looks like CI(1) should be 1050, etc. In otherwords, C(0) should be 1000. Also, your calculation is the principal and interest. therefore your CompoundInterestSum(3) is overstated. If you think not, then I would like to invest in your company...
– gns100
Dec 12 at 17:48




There are a lot of formulas -> financial in excel that can accomplish what you desire. However, it looks like CI(1) should be 1050, etc. In otherwords, C(0) should be 1000. Also, your calculation is the principal and interest. therefore your CompoundInterestSum(3) is overstated. If you think not, then I would like to invest in your company...
– gns100
Dec 12 at 17:48












Thanks! You are correct and I've updated to start at a zero-based index. What do you mean by overstated in the example? My actual scenario is calculating total returns on solar power.
– jsmars
Dec 13 at 10:52




Thanks! You are correct and I've updated to start at a zero-based index. What do you mean by overstated in the example? My actual scenario is calculating total returns on solar power.
– jsmars
Dec 13 at 10:52










1 Answer
1






active

oldest

votes


















1














=-FV(z,y,x) or =FV(z,y,-x)



This calculates the Future Value of a stream of amounts based on the interest rate per period, the number of periods, and the amount added each period.



https://support.office.com/en-us/article/FV-function-2EEF9F44-A084-4C61-BDD8-4FE4BB1B71B3






share|improve this answer



















  • 1




    I was looking at this function earlier, but it returns a negative value and it's described as used for loans. Looking into it further it seems the result is the same as long as the value is negated, so if you updated your answer with a - or *-1 for clarity I will mark it as correct. Thanks a lot!
    – jsmars
    Dec 13 at 10:47










  • @jsmars, that's strange that it comes out negative. Apparently it has to do with tradition with how finance people think of (+) and (-)... good catch, I'll update
    – BobtheMagicMoose
    Dec 13 at 19:45











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1 Answer
1






active

oldest

votes








1 Answer
1






active

oldest

votes









active

oldest

votes






active

oldest

votes









1














=-FV(z,y,x) or =FV(z,y,-x)



This calculates the Future Value of a stream of amounts based on the interest rate per period, the number of periods, and the amount added each period.



https://support.office.com/en-us/article/FV-function-2EEF9F44-A084-4C61-BDD8-4FE4BB1B71B3






share|improve this answer



















  • 1




    I was looking at this function earlier, but it returns a negative value and it's described as used for loans. Looking into it further it seems the result is the same as long as the value is negated, so if you updated your answer with a - or *-1 for clarity I will mark it as correct. Thanks a lot!
    – jsmars
    Dec 13 at 10:47










  • @jsmars, that's strange that it comes out negative. Apparently it has to do with tradition with how finance people think of (+) and (-)... good catch, I'll update
    – BobtheMagicMoose
    Dec 13 at 19:45
















1














=-FV(z,y,x) or =FV(z,y,-x)



This calculates the Future Value of a stream of amounts based on the interest rate per period, the number of periods, and the amount added each period.



https://support.office.com/en-us/article/FV-function-2EEF9F44-A084-4C61-BDD8-4FE4BB1B71B3






share|improve this answer



















  • 1




    I was looking at this function earlier, but it returns a negative value and it's described as used for loans. Looking into it further it seems the result is the same as long as the value is negated, so if you updated your answer with a - or *-1 for clarity I will mark it as correct. Thanks a lot!
    – jsmars
    Dec 13 at 10:47










  • @jsmars, that's strange that it comes out negative. Apparently it has to do with tradition with how finance people think of (+) and (-)... good catch, I'll update
    – BobtheMagicMoose
    Dec 13 at 19:45














1












1








1






=-FV(z,y,x) or =FV(z,y,-x)



This calculates the Future Value of a stream of amounts based on the interest rate per period, the number of periods, and the amount added each period.



https://support.office.com/en-us/article/FV-function-2EEF9F44-A084-4C61-BDD8-4FE4BB1B71B3






share|improve this answer














=-FV(z,y,x) or =FV(z,y,-x)



This calculates the Future Value of a stream of amounts based on the interest rate per period, the number of periods, and the amount added each period.



https://support.office.com/en-us/article/FV-function-2EEF9F44-A084-4C61-BDD8-4FE4BB1B71B3







share|improve this answer














share|improve this answer



share|improve this answer








edited Dec 13 at 19:46

























answered Dec 12 at 17:59









BobtheMagicMoose

54439




54439








  • 1




    I was looking at this function earlier, but it returns a negative value and it's described as used for loans. Looking into it further it seems the result is the same as long as the value is negated, so if you updated your answer with a - or *-1 for clarity I will mark it as correct. Thanks a lot!
    – jsmars
    Dec 13 at 10:47










  • @jsmars, that's strange that it comes out negative. Apparently it has to do with tradition with how finance people think of (+) and (-)... good catch, I'll update
    – BobtheMagicMoose
    Dec 13 at 19:45














  • 1




    I was looking at this function earlier, but it returns a negative value and it's described as used for loans. Looking into it further it seems the result is the same as long as the value is negated, so if you updated your answer with a - or *-1 for clarity I will mark it as correct. Thanks a lot!
    – jsmars
    Dec 13 at 10:47










  • @jsmars, that's strange that it comes out negative. Apparently it has to do with tradition with how finance people think of (+) and (-)... good catch, I'll update
    – BobtheMagicMoose
    Dec 13 at 19:45








1




1




I was looking at this function earlier, but it returns a negative value and it's described as used for loans. Looking into it further it seems the result is the same as long as the value is negated, so if you updated your answer with a - or *-1 for clarity I will mark it as correct. Thanks a lot!
– jsmars
Dec 13 at 10:47




I was looking at this function earlier, but it returns a negative value and it's described as used for loans. Looking into it further it seems the result is the same as long as the value is negated, so if you updated your answer with a - or *-1 for clarity I will mark it as correct. Thanks a lot!
– jsmars
Dec 13 at 10:47












@jsmars, that's strange that it comes out negative. Apparently it has to do with tradition with how finance people think of (+) and (-)... good catch, I'll update
– BobtheMagicMoose
Dec 13 at 19:45




@jsmars, that's strange that it comes out negative. Apparently it has to do with tradition with how finance people think of (+) and (-)... good catch, I'll update
– BobtheMagicMoose
Dec 13 at 19:45


















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