Escalation Formula
 

First, thank you for looking at this post and any and all help you can offer.

Is there a formula to calculate escalation?
Say I have a price of $1,000, the average increase is 4.5% per year and I
want to escalate the 1000 over a 10 year period. Could this be done? I'm
trying to find the result for each year and then separately for year 10.

Thank you for your help
Joe

Answer: Escalation Formula
 

Hi Joe,

Yes, there is a formula to calculate escalation in Microsoft Excel. You can use the POWER function to calculate the escalation rate for each year and then multiply it by the original price to get the escalated price for each year.

Here are the steps to do it:

1. Enter the original price in cell A1 (in your case, $1,000).
2. Enter the escalation rate in cell A2 (in your case, 4.5%).
3. Enter the number of years in cell A3 (in your case, 10).
4. In cell B1, enter the formula
   Code:

   ---

   =A1*(1+A2/100)^1

   ---

   . This will give you the escalated price for year 1.
5. Copy the formula in cell B1 and paste it in cells B2 to B10. This will give you the escalated price for each year.
6. To get the escalated price for year 10, simply refer to cell B10.

That's it! You now have the escalated price for each year and separately for year 10.

I hope this helps. Let me know if you have any further questions.

Escalation Formula
 

assuming

a1 = 1000
b1 = 4,5%
c1 = # of years (1,2..10)
d1 =(a1*(1+b1)^c1)

change c1 to see the result as you need

hth
--
regards from Brazil
Thanks in advance for your feedback.
Marcelo



"Joe Gieder" escreveu:

First, thank you for looking at this post and any and all help you can offer.

Is there a formula to calculate escalation?
Say I have a price of $1,000, the average increase is 4.5% per year and I
want to escalate the 1000 over a 10 year period. Could this be done? I'm
trying to find the result for each year and then separately for year 10.

Thank you for your help
Joe

Escalation Formula
 

Thank you for the formula. It does just what I need. How does the formula
know to compound?

"Marcelo" wrote:

assuming

a1 = 1000
b1 = 4,5%
c1 = # of years (1,2..10)
d1 =(a1*(1+b1)^c1)

change c1 to see the result as you need

hth
--
regards from Brazil
Thanks in advance for your feedback.
Marcelo



"Joe Gieder" escreveu:

First, thank you for looking at this post and any and all help you can offer.

Is there a formula to calculate escalation?
Say I have a price of $1,000, the average increase is 4.5% per year and I
want to escalate the 1000 over a 10 year period. Could this be done? I'm
trying to find the result for each year and then separately for year 10.

Thank you for your help
Joe

Escalation Formula
 

If you wish...

=FV(4.5%,C1,,-1000)

where C1 is the year in question.

--
HTH :)
Dana DeLouis


"Joe Gieder" wrote in message ...

Thank you for the formula. It does just what I need. How does the formula
know to compound?

"Marcelo" wrote:


assuming

a1 = 1000
b1 = 4,5%
c1 = # of years (1,2..10)
d1 =(a1*(1+b1)^c1)

change c1 to see the result as you need

hth
--
regards from Brazil
Thanks in advance for your feedback.
Marcelo



"Joe Gieder" escreveu:


First, thank you for looking at this post and any and all help you can offer.

Is there a formula to calculate escalation?
Say I have a price of $1,000, the average increase is 4.5% per year and I
want to escalate the 1000 over a 10 year period. Could this be done? I'm
trying to find the result for each year and then separately for year 10.

Thank you for your help
Joe

Escalation Formula
 

Thank you for the formula it works perfectly, I appreciate your help and
response. One question, why do you use a -1000? I used the formula without it
and I received a negative answer for the value but why does this formula
require a -1000?

Joe

"Dana DeLouis" wrote:

If you wish...

=FV(4.5%,C1,,-1000)

where C1 is the year in question.

--
HTH :)
Dana DeLouis


"Joe Gieder" wrote in message
...
Thank you for the formula. It does just what I need. How does the
formula
know to compound?

"Marcelo" wrote:

assuming

a1 = 1000
b1 = 4,5%
c1 = # of years (1,2..10)
d1 =(a1*(1+b1)^c1)

change c1 to see the result as you need

hth
--
regards from Brazil
Thanks in advance for your feedback.
Marcelo



"Joe Gieder" escreveu:

First, thank you for looking at this post and any and all help you
can offer.

Is there a formula to calculate escalation?
Say I have a price of $1,000, the average increase is 4.5% per year
and I
want to escalate the 1000 over a 10 year period. Could this be done?
I'm
trying to find the result for each year and then separately for year
10.

Thank you for your help
Joe

Escalation Formula
 

It's amazing what you can find in the help index for FV. Look there.


--
Don Guillett
Microsoft MVP Excel
SalesAid Software

"Joe Gieder" wrote in message
...
Thank you for the formula it works perfectly, I appreciate your help and
response. One question, why do you use a -1000? I used the formula without
it
and I received a negative answer for the value but why does this formula
require a -1000?

Joe

"Dana DeLouis" wrote:

If you wish...

=FV(4.5%,C1,,-1000)

where C1 is the year in question.

--
HTH :)
Dana DeLouis


"Joe Gieder" wrote in message
...
Thank you for the formula. It does just what I need. How does the
formula
know to compound?

"Marcelo" wrote:

assuming

a1 = 1000
b1 = 4,5%
c1 = # of years (1,2..10)
d1 =(a1*(1+b1)^c1)

change c1 to see the result as you need

hth
--
regards from Brazil
Thanks in advance for your feedback.
Marcelo



"Joe Gieder" escreveu:

First, thank you for looking at this post and any and all help you
can offer.

Is there a formula to calculate escalation?
Say I have a price of $1,000, the average increase is 4.5% per year
and I
want to escalate the 1000 over a 10 year period. Could this be done?
I'm
trying to find the result for each year and then separately for year
10.

Thank you for your help
Joe