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Excel Formulas vs. Functions – Auto Loan Calculator (PMT)


Car Loan Calculator using PMT Function in Excel

         If you are like me, you are using terms Excel Formulas and Functions interchangeably. However, these expressions represent distinctly different concepts. We can think of a formula as a statement that returns results of a certain user-defined calculation. Formulas can contain values (numeric, date, text,) cell references, ranges of cells, named ranges; they can perform any mathematical operation (addition, subtraction, multiplication, division, exponentiation,) as well as evaluate results of Excel’s built-in functions…A function is a predetermined formula that helps us simplify complex procedures and operations. For example, great folks at Microsoft programmed different functions that allow us to sum a group of numbers, search for a specific word within a text string, determine current date and time, or even figure out amount of our loan payment. Ability to construct complex Excel formulas , using multiple Excel functions is one of the prerequisites for becoming an Excel expert. Formulas always start with the equal sign ( = ), and we always enclose functional arguments (if any) inside parentheses.

          Let’s suppose that you need to calculate auto loan payment for your dream car – 2015 Ford Mustang GT. According to TrueCarPrice , for the base V8 model, you should expect to shell out $ 32,864 of your hard-earned dollars for this car; if you reside in the state that Ford Motor Company calls home. This price is comprised of $ 29,612 true value estimate, $ 567 market premium, $ 825 delivery charge, and state sales tax. According, to Bank Rate, you can realistically finance this purchase with a 3% interest rate loan. Since you just received your Holiday bonus, you want to put it towards a $5,000 down payment on your new car. Let’s calculate your monthly car payment using both: formula method without utilizing Excel functions: =P*i*(1+i)^n/((1+i)^n-1) , as well as through a formula incorporating Excel’s PMT function. Both of these methods rely on formulas to perform the necessary calculations, but only the second method makes use of an Excel function.
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Create a Holiday Email in Excel, using HYPERLINK function


Create Holiday Greetings Email in Excel, using HYPERLINK function

         It seems like this year passed by particularly fast, and now we are at a point when people expect to receive Holiday Greetings from us. Did you know to that you can compose your holiday email entirely in Excel, using the HYPERLINK function? We need to meet two basic requirements: 1) set up a default email client (Outlook, LotusNotes, Thunderbird, GroupWise, etc.,) AND 2) your entire message (including To/CC/BCC/Subject/Body fields) needs to be 255 characters long or shorter. While this method requires no macros, nor VBA code, it cannot actually “send” the email for you, it will open it in your default email client, but you still need to click the SEND button.

          HYPERLINK function has the following syntax (link_location,[friendly_name]). This means that the only required parameter is link_location, passing a sample email address argument, we can create a simple email link using this syntax: =HYPERLINK(“mailto:Email1@example.com”). I would strongly advise to also name your hyperlink, otherwise the cell containing it will appear to be blank. Unfortunately, we can find rather limited documentation on HYPERLINK function within Excel Help section. However, Microsoft did publish additional information about this function. This article can help us easily add To,CC,BCC,Subject, and Body fields to our email template.
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7 Ways to conditionally calculate sum of values in Excel.


Conditional SUM functions in Excel

         Excel offers different ways to accomplish the same task. This is especially evident in the case of using Excel functions, where we can simply choose the one that offers the best solution, or more realistically, the one that we are more comfortable using. As an example, let’s solve the following scenario: We are offering online Excel courses both: on our internal website, as well as on Udemy’s platform. Udemy charges us 50% fee on all course sales, and also offers promotional rates to increase our volume. As a result, we are selling the same content at different prices. Looking at Thanksgiving week sales performance, let’s calculate our total Net Sales for all of Udemy transactions (highlighted). Let’s use different Excel functions to perform calculation required.

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Using SUBTOTAL Excel function

SUBTOTAL Excel Function

         Let’s talk about benefits of using SUBTOTAL Excel function. This function offers too many features to be overlooked. On the surface, it appears that this function does nothing more than its name suggests: calculates a subtotal of your references: constants, individual cells, or ranges of cells. The reality is that this versatile function calculates 11 different subtotals, (think 11 functions in one): AVERAGE, COUNT, COUNTA, MAX, MIN, PRODUCT, STDEV, STDEVP, SUM, VAR, VARP. This function works similarly to your typical SUM or AVERAGE, where you need to reference your data range to be used in the calculation, however, you also need to specify function type. As you are typing the name of this function in your formula bar, Excel will automatically display the list of possible function types, or you can look up function types from the table below. The function’s syntax is very simple: = SUBTOTAL(FUNCTION_TYPE, RANGE)

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