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Use VLOOKUP when you need to find things in a table or a range by row

The document explains how to use the VLOOKUP and PMT functions in Microsoft Excel for data lookup and financial calculations, respectively. VLOOKUP allows users to find values in a table based on a lookup value, while the PMT function calculates periodic loan payments based on interest rates and loan terms. It provides syntax examples and practical scenarios for both functions to facilitate understanding.

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10 views2 pages

Use VLOOKUP when you need to find things in a table or a range by row

The document explains how to use the VLOOKUP and PMT functions in Microsoft Excel for data lookup and financial calculations, respectively. VLOOKUP allows users to find values in a table based on a lookup value, while the PMT function calculates periodic loan payments based on interest rates and loan terms. It provides syntax examples and practical scenarios for both functions to facilitate understanding.

Uploaded by

lemerdzsison3
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Use VLOOKUP when you need to find things in a table or a range by row.

For example, look up a price of an


automotive part by the part number, or find an employee name based on their employee ID.

In its simplest form, the VLOOKUP function says:

=VLOOKUP(What you want to look up, where you want to look for it, the column number in the range containing the
value to return, return an Approximate or Exact match – indicated as 1/TRUE, or 0/FALSE).

How to get started

There are four pieces of information that you will need in order to build the VLOOKUP syntax:

1. The value you want to look up, also called the lookup value.
2. The range where the lookup value is located. Remember that the lookup value should always be in the first
column in the range for VLOOKUP to work correctly. For example, if your lookup value is in cell C2 then
your range should start with C.
3. The column number in the range that contains the return value. For example, if you specify B2:D11 as the
range, you should count B as the first column, C as the second, and so on.
4. Optionally, you can specify TRUE if you want an approximate match or FALSE if you want an exact match of
the return value. If you don't specify anything, the default value will always be TRUE or approximate match.

In Microsoft Excel, the PMT and VLOOKUP formulas are powerful functions used for financial and data lookup
operations, respectively. Here’s a guide on how to use each:

PMT Formula

The PMT function is used to calculate the periodic payment for a loan or investment based on constant payments and
a constant interest rate.

Syntax:

=PMT(rate, nper, pv, [fv], [type])

 rate: The interest rate for each period.


 nper: The number of payment periods in the loan.
 pv: The present value, or total loan amount.
 fv (optional): The future value or cash balance you want after the last payment. Default is 0.
 type (optional): When payments are due. Use 0 for end of the period (default) and 1 for beginning.

=PMT(5%/12, 5*12, -20000)

This formula divides the annual rate by 12 to get the monthly rate, and multiplies the years by 12 to get the total
number of payments. The result will be a negative value, as it represents a cash outflow.

VLOOKUP Formula

The VLOOKUP function is used to search for a value in the first column of a table and return a value in the same row
from a specified column.

Syntax:

=VLOOKUP(lookup_value, table_array, col_index_num, [range_lookup])

 lookup_value: The value to search for in the first column of the table.
 table_array: The range of cells that contains the data.
 col_index_num: The column number in the table from which to retrieve the value.
 range_lookup (optional): Use TRUE for an approximate match or FALSE for an exact match.

Example: Suppose you have a list of product IDs in column A and their prices in column B. To find the price of a
product with ID 101:

excel
Copy code
=VLOOKUP(101, A2:B10, 2, FALSE)

This searches for 101 in the first column of the range A2:B10 and returns the corresponding price from the second
column.

Here’s a practical example to illustrate the PMT function in Excel, which helps calculate the periodic payment for a
loan.

Scenario

Suppose you are taking out a loan for $15,000 with an annual interest rate of 6%, and you want to pay it off in 3 years
with monthly payments. You want to know the monthly payment amount.

Using the PMT Formula

1. Interest Rate (rate): Since payments are monthly, divide the annual interest rate by 12:

6%/12=0.5% per month (or 0.005 in decimal form)6\% / 12 = 0.5\% \text{ per month} \text{ (or 0.005 in
decimal form)}6%/12=0.5% per month (or 0.005 in decimal form)

2. Total Payment Periods (nper): Since the loan term is 3 years with monthly payments, calculate the number of
payments by multiplying 3 years by 12 months:

3∗12=36 months3 * 12 = 36 \text{ months}3∗12=36 months

3. Loan Amount (pv): The present value (or principal loan amount) is $15,000. In the PMT formula, this is
entered as a negative value because it represents an outgoing payment.
4. Future Value (fv) and Type: Since you want to pay off the loan completely, you can leave the future value
(fv) as the default 0. The type can also be left as default 0 because payments are due at the end of each period.

A B C D E
1 Product Product Price
ID Name
2 1101 VIVO ₱4,100.00
3 1111 REALME ₱1,562.00
4 1001 HONOR ₱4,562.00
5 1011 POCO ₱9,584.00
6
7
8 Product ID: 1101 VIVO ₱4,100.00
9 =VLOOKUP(B10,B4:D7,3,FALSE
)

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