Percentage formula's

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G

Guest

I need a formula for calculating an even percentage amount between a
specified range of numbers. This is for a pay plan. For example, the starting
salary is $30,000 and the top salary is $65,000; I need a formula that will
give the 8 steps from start to top with the exact same percentage - not
dollar amount.
 
Using your example I got:

30,000 first year
33,504 second year
37,416 third year
41,786 fourth year
46,666 fifth year
52,116 sixth year
58,203 seventh year
65,000 eighth year

using a fixed 11.67869% raise for each year.

I used
=(B8/B1)^(1/7)-1
as the formula. Where B8 has the end value (65,000)
B1 has the starting value (30,000)
and the 7 is one less than the number of
rows.


(there is probably a simple financial function for this, but I haven't taken
that course yet.)
 
Stormy,

This is called compound growth.

In cell A1, put 30000.

In cell A2, put the formula

=A1*((65000/30000)^(1/8))
or
=A1*((65000/30000)^(1/7))

(Not clear what you mean by eight steps: eight steps or 8 values in stepped manner)

Copy cell A2, and copy down for another 6 or 7 cells, until the last value is 65000.

HTH,
Bernie
MS Excel MVP
 
Stormy Weather said:
I need a formula for calculating an even percentage amount between a
specified range of numbers. This is for a pay plan. For example, the starting
salary is $30,000 and the top salary is $65,000; I need a formula that will
give the 8 steps from start to top with the exact same percentage - not
dollar amount.
Click to expand...

As I understand it, you want a formula to compute the
periodic (annual) rate of change from $30,000 to $65,000
in 8 periods (years).

Gary''s Student said:
I used =(B8/B1)^(1/7)-1 as the formula.
Where B8 has the end value (65,000)
B1 has the starting value (30,000)
and the 7 is one less than the number of rows.
(there is probably a simple financial function for this [...])
Click to expand...

Normally, the first ("present") value is not one of the
steps. Hence, RATE(8,,-30000,65000).

If the OP intends the first value to be one of the "steps",
I would say he wants the rate of change over 7 periods.
Hence, RATE(7,,-30000,65000).
 
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