# Thread: Calculate N Years Inflation (Excel 97-SR2)

1. ## Calculate N Years Inflation (Excel 97-SR2)

Is there a natty way of calculating a compound(?) inflation rate for 'n' years. I know the start date. I know where I am now. (I wish!). I have a single inflation rate I want to add for each year. I have a pay grade table that should be updated once a year. i.e. I know when it was last updated. I want to take account of people not updating the table and add 'n' years inflation. Currently I 'assume' the table was updated in recent history. I currently have:

=IF(SomeConditionIsTrue,AZ5+(AZ5*(Inflation/100)),AZ5)
N.B. I guess this came from cell BA5.

In effect what it does is add the inflation rate to the value in the previous cell, or just copies the value in the previous cell if we are not due to increment inflation. The net result is that the TRUE calculation will only ever calculate every April, which is what I want.

I would like to be able to add n' years inflation based upon the number of years between a start date and the current date. e.g.

StartDate=2000
NowDate=2003
Inflation=3

=1+(((YEAR(NowDate)-YEAR(StartDate))*Inflation)/100) = 1.09

The answer I want, in this case is 1.092727. Picky I know.... Is there a way?

Regards
Peter

2. ## Re: Calculate N Years Inflation (Excel 97-SR2)

=(1+Inflation/100)^(NowDate-StartDate)

Steve

3. ## Re: Calculate N Years Inflation (Excel 97-SR2)

Steve, won't that compound daily? I usually use (where inflation rate is already expressed as a percentage):

=(1+inflation_rate/12)^DATEDIF(now_date,end_date,"m")

4. ## Re: Calculate N Years Inflation (Excel 97-SR2)

Steve 's formula is correct, and compounds annually, as requested. I always work with dates, and compound monthly.

5. ## Re: Calculate N Years Inflation (Excel 97-SR2)

Steve

Many thanks. Exactly what I wanted. I knew I needed to use exponation, just had the numbers the wrong way round. (So many to choose from!)

Regards
Peter

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