Functions In

Excel
A Function

• Performs a predefined operation

• A function
• Accepts one or more arguments as
input
• Performs the indicated calculation
• Returns another value as output
Main Functions
• Financial Functions
• Statistical Functions
• DATABASE Functions
Financial
Functions
Financial Functions
• NPV
• IRR
• PMT
• IPMT

• Be consistent about the units for specifying rate and

nper
• Monthly payments on a four-year loan at 12 percent
annual interest, use 12%/12 for rate and 4*12 for nper.
• Annual payments on the same loan, use 12% for rate and 4
for nper
 Internal Rate of Return (IRR) and

Net Present Value (NPV)

Net present value (NPV): the sum of the present values of all
cash inflows minus the sum of the present values of all
cash outflows.

The internal rate of return (IRR): (1) the discount rate that
equates the sum of the present values of all cash inflows
to the sum of the present values of all cash outflows;
(2) the discount rate that sets the net present value
equal to zero.

The internal rate of return measures the investment yield.

PMT and IPMT

• PMT- This function calculates the payment

for a loan based on constant payments and
constant interest rate
• IPMT- This function calculates the interest
payment based on periodic , constant
payments and a constant interest rate
NPV

• NPV(rate,value1,value2,…)
• Rate is the rate of discount over the length of
one period
• Value1,value2,… must be equally spaced in
time and occur at the end of each period
IRR

• IRR(values,guess)
• Values are an array or a reference to cells that
contains numbers for which you want to
calculate the internal rate of return
• Guess is a number that you guess is close to the
result of IRR
PMT

• PMT(rate,nper,pv,fv,type)
• Rate is the interest rte of the loan
• Nper is the total number of payments for the
loan
• Pv is the present value
• Fv is the future value
• Type is the number 0 or 1 and indicates when
payments are due
IPMT
• IPMT(rate,per,nper,pv,fv,type)
• Rate is the interest rate per period
• Per is the period for which you want to find the interest
and must be in the range 1 to nper
• Nper is the total number of payment periods in an
annuity
• Pv is the present value
• Fv is the future value
• Type is the number 0 or 1 and indicates when payments
are due
 Statistical
Functions in

Excel
Statistical functions
Excel has a wide variety of built-in
statistics functions that give, the
standard and mean deviation of a data
sample, and the mean, median and
mode of a set of values.
1. Average Function

Returns the average (arithmetic mean) of the

arguments.

Syntax ::: AVERAGE(number1,number2,...)

Number1, number2, ... are 1 to N numeric arguments for
which you want the average.

Example ::: Data = 10,7,9,27,2

AVERAGE(A2:A6) Average of the numbers above

(11)
AVERAGE(A2:A6, 5) Average of the numbers above
and 5 (10)
2. Median Function
Returns the median of the given numbers.
The median is the number in the middle of a set of
numbers; that is, half the numbers have values that are
greater than the median, and half have values that are less.

Syntax ::: MEDIAN(number1,number2,...)

Number1, number2, ... are 1 to N numeric arguments for
which you want the median.

Example ::: Data = 1,2,3,4,5,6

MEDIAN(A2:A6) Median of the first 5 numbers in the list

above (3)
MEDIAN(A2:A7) Median of all the numbers above, or
the average of 3 and 4 (3.5)
3. AVEDEV Function
Returns the average of the absolute
deviations of data points from their mean. AVEDEV is a
measure of the variability in a data set.

Syntax ::: AVEDEV(number1,number2,...)

Number1, number2, ... are 1 to 30 arguments for which
you want the average of the absolute deviations. You can
also use a single array or a reference to an array instead of
arguments separated by commas.
The equation :

Example ::: Data = 4,5,6,7,5,4,3

AVEDEV(A2:A8) Average of the absolute

deviations of the numbers above from their mean
(1.020408)
4. STEDEV Function
Estimates standard deviation based on a
sample. The standard deviation is a measure of how widely
values are dispersed from the standard value.

Syntax ::: STDEV(number1,number2,...)

Number1, number2, ... are 1 to 30 number arguments
corresponding to a sample of a population. You can also
use a single array or a reference to an array instead of
arguments separated by commas.

The equation:
5. CORREL Function

Returns the correlation coefficient of the array1

and array2 cell ranges. Use the correlation coefficient to determine
the relationship between two properties. For example, you can
examine the relationship between a location's average temperature
and the use of air conditioners.

Syntax ::: CORREL(array1,array2)

Array1 is a cell range of values.
Array2 is a second cell range of values.

The equation :
6. RANK Function
Returns the rank of a number in a list of
numbers. The rank of a number is its size relative to other
values in a list. (If you were to sort the list, the rank of the
number would be its position.)

Syntax ::: RANK(number,ref,order)

Number is the number whose rank you want to find.
Ref is an array of, or a reference to, a list of numbers.
Nonnumeric values in ref are ignored.
Order is a number specifying how to rank number.
• If order is 0 (zero) or omitted, Microsoft Excel ranks
number as if ref were a list sorted in descending order.
• If order is any nonzero value, Microsoft Excel ranks
number as if ref were a list sorted in ascending order
 Database
Functions in

Excel
Introduction
• In this information age, the major challenge for
every organization is to keep proper database in
order to prosper in the future.
• Databases are store-houses of information.
• Provides latest information.
• Database is an organized collection of related
information about a particular subject or purpose.
• Information in database is stored in rows and
columns
• Ms-Excel also contains a good database which is
a collection of information that is organized so
that it can easily be accessed, managed, and
updated
 Computer D a t a Hierarchy DB
pyramid
FILE

TABLE

RECORD

FIELD

DATA

Bits and bytes

Traditional databases are organized by fields, records,

and files. A field is a single piece of information;
a record is one complete set of fields; and a file is a
collection of records.
To access information from a database, you need a
database management system (DBMS). This is a
collection of programs that enables you to enter,
organize, and select data in a database.

The following figure shows the basic layout of a

database table:
1. DAVERAGE Function
Averages the values in a column of a list
or database that match conditions you specify.
Syntax ::: DAVERAGE (database,field,criteria)
• Database is the range of cells that makes up the list or
database.
• Field indicates which column is used in the function.
Field can be given as text with the column label
enclosed between double quotation marks, such as
“-----” as a number that represents the position of the
column within the list
• Criteria is the range of cells that contains the
conditions you specify
2. DSUM Function
Adds the numbers in a column of a
list or database that match conditions you specify.
Syntax ::: DSUM (database,field,criteria)
• Database is the range of cells that makes up the list or
database.
• Field indicates which column is used in the function.
Field can be given as text with the column label
enclosed between double quotation marks, such as
”------” or as a number that represents the position of
the column within the list
• Criteria is the range of cells that contains the
conditions you specify
3. DMAX Function
Returns the largest number in a column
of a list or database that matches conditions
you specify.
Syntax ::: DMAX(database,field,criteria)
• Database is the range of cells that makes up the list or
database.
• Field indicates which column is used in the function.
Field can be given as text with the column label
enclosed between double quotation marks, such as
“-----” or as a number that represents the position of the
column within the list
• Criteria is the range of cells that contains the
conditions you specify
4. DMIN Function
Returns the largest number in a column
of a list or database that matches conditions
you specify.
Syntax ::: DMIN(database,field,criteria)
• Database is the range of cells that makes up the list or
database.
• Field indicates which column is used in the function.
Field can be given as text with the column label
enclosed between double quotation marks, such as
“-----” or as a number that represents the position of the
column within the list
• Criteria is the range of cells that contains the
conditions you specify