If I may ask, for the offset formula - how come your excel sheet only shows one value when the width is actually 15 cells? I have followed your instructions step by steps but when I enter the offset formula my offset output creates an array of 1x15 years which is different from your output result. Is there a setting there I may have missed out ?
When you add 6,000 plus the one 8% interest, the total is 6,480. Then you add the additional 6,000 next year, so total now is 12,480. That then is the basis of the next 8% interest earning, which comes to 998.40, which is 8% of 12,480 Add 12,480 and your interest of 998.40, your total comes to 19,478.40. And so on and so forth. This is supposed to be the correct computation for COMPOUNDING INTEREST. Kindly correct me if I am wrong.
David- I stumbled upon your great video creating a savings/investing compound Excel sheet and chart. I want to recreate what you created but add my, then my wife’s, annual social security income starting at a specific year for each of us. Finally, we have some lump sum funds that may pop up in a few years. How would you take your spreadsheet and then add the capabilities I need?
I just found your channel. Great explanation on how to create a compound interest chart. Question: How would you modify it to add additional streams of contribution at specific years vs. just the one annual field? Example: I retired 4 years ago. At a specific age I will start collecting Social Security (I live in the United States). Additionally, I invest in commercial real estate crowdfunding with specific year payouts. How would add those amounts in specific years, as well?
Excellent tutorial, and very well produced! I cannot for the life of me make the dollar sign appear as you do in the final total. It automatically aligns right, and if shifted to currency the dollar sign aligns left. In your video, you end the tutorial with "Final Amount" (F3) unformatted, but then show the final table with it formatted in the center with a dollar sign just like the total contributed cell. Forgive my ignorance, but how did you change the format? It happened automatically for me for the total contributed cell, but not F3. Again, excellent tutorial and I look forward to watching more!
Great video and nice and quick. Question though, for you or anyone - how do you add in fees? For example I am trying to show the impact of MER's on growth. I can do it by building out a large worksheet but can not figure out how to have work dynamically as you have done here. Thank you in advance.
@shawn. 0 seconds ago Have you tried making a 3rd column of the total minus the fees then copy / paste that onto the chart to show the difference ss a second line?
Hi David, Excellent video.. I have a question on how to make a table/graph that would represent your earnings from compound staking. In other words.. If I invest $10,000 at 12% APY for period of 120 days.. my earnings would be aprox $395 But I have the option to compound my earnings at any point.. So my question is, if I wanted to put back my monthly earnings (aprox $98) back into my initail investment for the remaining days (90), how much would I be earning? respectively for 60 days, and 30 days left. I would greatly appreciate your help on how to write up a table for this.
David The direction of value investing is actually aiming for "compounding interest". Compounding interest is actually talking about compounding dividend. A growth stock which consistently pay dividends, consists of “Intrinsic Value Compounding” and “Dividend Compounding”. Rather than saying “Intrinsic Value Compounding” is being invented, i would say that “Intrinsic Value Compounding” is rather a discovery of a buried compounding inherited in a consistently growing stock. Nobody knows there is so called “intrinsic value compouding” except Buffett, Munger and Li Lu. I am very sure about this argument. If you want to have a breakthrough in the new value investing, i suggest you start to do research on “Intrinsic Value Compounding". Logic and reasoning are utmost important. Hope you found the way to reveal the right formula of “Intrinsic Value Compounding”. The impact power magnitude of “Intrinsic Value Compouding” is very much stronger than the widely spoken “Compounding Interest” aka “Dividend Compounding”. Cheers
I get lost from "creating a name Range" where you start with offset formula. I am using the same example but get a different answer when doing the offset part. Your answer is 68925 and i get 6480. PLEASE HELP. I am also strugling with the chart.
If the offset formula is right, it should work, with =OFFSET($C$7,1,0,1,$C$4). Basically that references the "Year" number first, then tells Excel to to look one row under the year (for the $ amount), and lastly tells it to be the amount of years "wide" or across. When putting the named range into the chart, I've found that it works when you use the sheet name as well, for example 'Compounding Calculator.xlsx'!MyRange.
Maybe is 1 year old comment but still will respond if someone from the future needs to read it. When you are typing a formula and you need to reference a specific cell. Press F4 and Excel will automatically insert dollar signs ($) to make the reference an absolute reference, which means that the reference will not change if you copy the formula to another cell. =A1*B1 let's say in the next formulas when I drag I wish to make A1*B2, A1*B3, A1*B4... You need to lock A1, you press F4 or type $A$1 and then drag. that way B change, but A does not, A will stay A1 even if you drag.
This was the best worst instructional video I've ever watched. The speed at which he moves through some sections with hotkeys and shortcuts he doesn't explain requires you to watch it in .25 speed and still miss stuff. It's like he's trying to teach without actually letting you know 100% of what he's doing like he's protecting trade secrets or something.
Stuck at the offset formula. It keeps giving me the full range and unable to adjust. Great tutorial other than that, I'll just go without the chart
Thank you so much ❤❤❤❤for your help
Great video and tutorial.
Thank you so much; I follow it until the end, and I learn a lot! 😀
If I may ask, for the offset formula - how come your excel sheet only shows one value when the width is actually 15 cells? I have followed your instructions step by steps but when I enter the offset formula my offset output creates an array of 1x15 years which is different from your output result. Is there a setting there I may have missed out ?
same happened to me, but just continue following the instructions, and it worked out eventually
When you add 6,000 plus the one 8% interest, the total is 6,480.
Then you add the additional 6,000 next year, so total now is 12,480.
That then is the basis of the next 8% interest earning, which comes to 998.40, which is 8% of 12,480
Add 12,480 and your interest of 998.40, your total comes to 19,478.40. And so on and so forth.
This is supposed to be the correct computation for COMPOUNDING INTEREST. Kindly correct me if I am wrong.
i would thought the same too. did a back test and the total contribution is > than the final amt for the first 4 years. strange. i may be wrong?
12,480 + 998.4 = 13,478.40 NOT 19,478.4
David- I stumbled upon your great video creating a savings/investing compound Excel sheet and chart.
I want to recreate what you created but add my, then my wife’s, annual social security income starting at a specific year for each of us. Finally, we have some lump sum funds that may pop up in a few years.
How would you take your spreadsheet and then add the capabilities I need?
would this be the same formula for a monthly dividend reinvestment?
Is there a way to create a calculator in which the additional yearly deposits increase? So depositing $20,000 this year, then $21,000 the next,etc.
Great video.. :)
I just found your channel. Great explanation on how to create a compound interest chart. Question: How would you modify it to add additional streams of contribution at specific years vs. just the one annual field? Example: I retired 4 years ago. At a specific age I will start collecting Social Security (I live in the United States). Additionally, I invest in commercial real estate crowdfunding with specific year payouts. How would add those amounts in specific years, as well?
Excellent tutorial, and very well produced! I cannot for the life of me make the dollar sign appear as you do in the final total. It automatically aligns right, and if shifted to currency the dollar sign aligns left. In your video, you end the tutorial with "Final Amount" (F3) unformatted, but then show the final table with it formatted in the center with a dollar sign just like the total contributed cell. Forgive my ignorance, but how did you change the format? It happened automatically for me for the total contributed cell, but not F3. Again, excellent tutorial and I look forward to watching more!
Spoke too soon, figured it out. (facepalm)
same happened to me, but then I just used Format painter tool, to copy the format from the other one that worked
Great video and nice and quick. Question though, for you or anyone - how do you add in fees? For example I am trying to show the impact of MER's on growth. I can do it by building out a large worksheet but can not figure out how to have work dynamically as you have done here. Thank you in advance.
i also have this question.
And stating this, anwers the question....how?
@shawn.
0 seconds ago
Have you tried making a 3rd column of the total minus the fees then copy / paste that onto the chart to show the difference ss a second line?
Hi David,
Excellent video..
I have a question on how to make a table/graph that would represent your earnings from compound staking.
In other words..
If I invest $10,000 at 12% APY for period of 120 days.. my earnings would be aprox $395
But I have the option to compound my earnings at any point..
So my question is, if I wanted to put back my monthly earnings (aprox $98) back into my initail investment for the remaining days (90), how much would I be earning?
respectively for 60 days, and 30 days left.
I would greatly appreciate your help on how to write up a table for this.
David
The direction of value investing is actually aiming for "compounding interest".
Compounding interest is actually talking about compounding dividend.
A growth stock which consistently pay dividends, consists of “Intrinsic Value Compounding” and “Dividend Compounding”.
Rather than saying “Intrinsic Value Compounding” is being invented, i would say that “Intrinsic Value Compounding” is rather a discovery of a buried compounding inherited in a consistently growing stock.
Nobody knows there is so called “intrinsic value compouding” except Buffett, Munger and Li Lu. I am very sure about this argument.
If you want to have a breakthrough in the new value investing, i suggest you start to do research on “Intrinsic Value Compounding".
Logic and reasoning are utmost important.
Hope you found the way to reveal the right formula of “Intrinsic Value Compounding”.
The impact power magnitude of “Intrinsic Value Compouding” is very much stronger than the widely spoken “Compounding Interest” aka “Dividend Compounding”.
Cheers
thanks
I get lost from "creating a name Range" where you start with offset formula. I am using the same example but get a different answer when doing the offset part. Your answer is 68925 and i get 6480. PLEASE HELP. I am also strugling with the chart.
If the offset formula is right, it should work, with =OFFSET($C$7,1,0,1,$C$4). Basically that references the "Year" number first, then tells Excel to to look one row under the year (for the $ amount), and lastly tells it to be the amount of years "wide" or across.
When putting the named range into the chart, I've found that it works when you use the sheet name as well, for example 'Compounding Calculator.xlsx'!MyRange.
@@davidmclachlanproject you are awesome thanks, i am now sorted👌
Total amount calculation seems wrong, pls recheck
did a back test and it is indeed wrong. Final amt is < contributed amt
mines worked but when i use it - it doesnt compound the way it does on the online compounding interest calculators.
Online may be using monthly compounding (Annual rate/12)
i want to make a sheet that only compounds every time the interest builds up to 50k. if that makes sense
I got lost when you dragged it across pls help
Maybe is 1 year old comment but still will respond if someone from the future needs to read it.
When you are typing a formula and you need to reference a specific cell. Press F4 and Excel will automatically insert dollar signs ($) to make the reference an absolute reference, which means that the reference will not change if you copy the formula to another cell.
=A1*B1
let's say in the next formulas when I drag I wish to make A1*B2, A1*B3, A1*B4... You need to lock A1, you press F4 or type $A$1 and then drag. that way B change, but A does not, A will stay A1 even if you drag.
This was the best worst instructional video I've ever watched. The speed at which he moves through some sections with hotkeys and shortcuts he doesn't explain requires you to watch it in .25 speed and still miss stuff. It's like he's trying to teach without actually letting you know 100% of what he's doing like he's protecting trade secrets or something.