M
MayBee
Calculate percentage of fund growth in past yeras; also percentage
relationship of 1 # to another
relationship of 1 # to another
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G
Gord Dibben
A1 contains 50
B1 contains 25
In C1 enter =A1/B1 and format as "percent" to get 50% in C1
Gord Dibben Excel MVP
B1 contains 25
In C1 enter =A1/B1 and format as "percent" to get 50% in C1
Gord Dibben Excel MVP
D
David
Hi Maybee,
Persent change is measured from one point "A" to another point "B." The
denominator is the point you are changing from, which in this case is "A."
The difference between A and B is the numerator. A= 25 B=50. B-A, the
differance is 25, which is the numerator and changing from A to B make sthe
formula 25/25, which eqals 1 or 100%. To go from 8 to 10 is a 25% change.
10-8=2 and 2/8=.25. To reverse this ie. to go from 10 to 8 is a 20% change.
10-8=2 and 2/10=.2.
Thanks,
David
Persent change is measured from one point "A" to another point "B." The
denominator is the point you are changing from, which in this case is "A."
The difference between A and B is the numerator. A= 25 B=50. B-A, the
differance is 25, which is the numerator and changing from A to B make sthe
formula 25/25, which eqals 1 or 100%. To go from 8 to 10 is a 25% change.
10-8=2 and 2/8=.25. To reverse this ie. to go from 10 to 8 is a 20% change.
10-8=2 and 2/10=.2.
Thanks,
David
J
Joe User
Gord Dibben said:A1 contains 50
B1 contains 25
In C1 enter =A1/B1 and format as "percent" to get 50% in C1
Gee, I hope not. A1/B1 = 2 = 200%. Just tried it.
Thankfully, this is human error. Excel does it right.
The correct formula is =(A1-B1)/B1 to determine how A1
has grown compared to B1 (i.e, "A1 is x% more [or less]
than B1"). The formula is =(B1-A1)/A1 to determine how
B1 has grown compared to A1.
But that is the answer to the second question, not the
first question.
J
Joe User
MayBee said:Calculate percentage of fund growth in past yeras
That depends on whether you want the total growth,
the average rate, or the annual rate.
Suppose you invested $10,000 5 years ago, and the
investment is now worth $12,500.
The total growth rate is 25%: (12500 - 10000) / 10000.
That is the answer to your second question.
(Note: This presumes that neither number is negative
or zero.)
The average rate is 5%, the total growth divided the
number of periods: (12500 - 10000) / 10000 / 5.
The annual rate is 4.56%: =RATE(5,0,-10000,12500).
This is the "interest" rate at which $10,000 would grow
to $12,500 when compounded each year (or whatever period).
Be sure to format the cell as Percentage with 2 decimal
places. Also, note the sign of the PV (-10000)and the FV
(12500). Normally, what you pay is negative, and what you
get (gross) is positive or negative, depending on whether
it is a gain or loss, respectively.
That is the simple case of a single payment of principal
and a single payment of proceeds. You can also use the
RATE function if you made payments of a fixed amount of
principal in each period. You need to use the IRR function
if you have varying cash flows.
G
Gord Dibben
You're correct.
Typo....should be =B1/A1
Gord
Typo....should be =B1/A1
Gord
Gord Dibben said:A1 contains 50
B1 contains 25
In C1 enter =A1/B1 and format as "percent" to get 50% in C1
Gee, I hope not. A1/B1 = 2 = 200%. Just tried it.
Thankfully, this is human error. Excel does it right.
The correct formula is =(A1-B1)/B1 to determine how A1
has grown compared to B1 (i.e, "A1 is x% more [or less]
than B1"). The formula is =(B1-A1)/A1 to determine how
B1 has grown compared to A1.
But that is the answer to the second question, not the
first question.