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How to calculate rental cash flows with rent increasing at varying intervals

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  1. #1
    MoneyMaker
    Guest

    Re: How to calculate rental cash flows with rent increasing at varying intervals

    I am very sorry I screwed up the formula and put in number of periods in place of the interest rate in the FV function

    I have now fixed it and added a new column that shows the increased monthly rent amount

    The amended formula is

    =IF( B15>=$E$5, IF(MOD(B15-$E$5,$E$6)=0, FV($E$3,INT((B15-$E$5)/$E$6)+1,0,-D15), FV($E$3,INT((B15-$E$5)/$E$6)+1,0,-D15) ), 0 )

    But if the interest rate is annual then the rate would have to be divided by 12

    =IF ( B15>=$E$5, IF(MOD(B15-$E$5,$E$6)=0, FV($E$3/12,INT((B15-$E$5)/$E$6)+1,0,-D15), FV($E$3/12,INT((B15-$E$5)/$E$6)+1,0,-D15) ), 0 )

    There are four new columns

    One that shows the amount of increase in rent at the interest rate
    Second column that shows the total new increased rent

    And the third column that shows the increase in rent when the rate is annual
    And the fourth column that shows the total increased rent at this rate

    Sorry about the confusion, your problem ate away 5 hours of my time so you owe me $100 as I charge $20/hr just kidding
    Attached Files Attached Files
    Last edited by MoneyMaker; 10-13-2012 at 04:15 AM. Reason: Added spaces in formulas for clarity

  2. #2
    MoneyMaker
    Guest

    Re: How to calculate rental cash flows with rent increasing at varying intervals

    I guess by this time you have figured that I overlook the obvious or am in fact mentally challenged thanks largely to prolonged exposure to chemicals

    The files and formulas I submitted earlier do not show the rental cash flows from period 6 till period 24

    I have reflected this change in the formula and all the cash flows look right this time

    So the formulas would change as listed below

    =IF( B15>=$E$5, IF(MOD(B15-$E$5,$E$6)=0, FV($E$3,INT((B15-$E$5)/$E$6)+1,0,-D15), FV($E$3,INT((B15-$E$5)/$E$6)+1,0,-D15)), D15)

    =IF( B15>=$E$5, IF(MOD(B15-$E$5,$E$6)=0, FV($E$3/12,INT((B15-$E$5)/$E$6)+1,0,-D15), FV($E$3/12,INT((B15-$E$5)/$E$6)+1,0,-D15)), D15)

    For reference, open and browse the attached Excel worksheet
    Attached Files Attached Files

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