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MeriHall's avatar
MeriHall
Copper Contributor
Jan 08, 2020
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Formula To Calculate Total Paid with Escalation

Need some Excel assistance. I have done some google searching and no luck finding an answer.

 

I am looking for a formula that will tell me how much I have paid over a period of time assuming there is a periodic escalation. 

 

For example - I have to make a payment per year and each year the annual payment is escalated by 3%. 

Year 1 = $1,000.00

Year 2 = $1,030.00

Year 3 = $1,060.90

 

Thus, after 3 years I have paid a total of $3,090.90.

 

Instead of having a cell for each year and then summing the total, hoping there is a formula that tells me what the total paid would be after X Years. I am fairly certain this was something I learned in high school match class, but I am drawing a blank...

3 Replies

  • Twifoo's avatar
    Twifoo
    Silver Contributor

    MeriHall 

    You can use the FV function, like this: 

    =FV(0.03,3,-1000)

    • MeriHall's avatar
      MeriHall
      Copper Contributor
      Thank you so much! I had seen this formula but the example people were giving was slightly different and only giving the payment in the year selected, not a sum.
      • Twifoo's avatar
        Twifoo
        Silver Contributor
        You’re very much welcome!

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