The first sheet you see in the template, “Model assumptions,” shows a place for you to select an initial investment, a number of years to retirement, a monthly investment range, and a rate of return range. The model uses this function as a shortcut to calculate the return on an investment portfolio extensively. We could equally easily get an answer for $1000 invested at 5% annual return for 25 years where we add $1000 in investment each year. =FV(rate of return, periods (years), ongoing investment, - initial investment) If we had $1000 invested at 5% annual return for 25 years we could use this function to get a quick answer. The experience of even trying is very frustrating and I don’t recommend it.Įxcel has a function FV (future value) that allows us to calculate the compounding of a certain amount of money with or without additional contributions over a number of periods like years. You may then wonder why I don’t provide this template or the others in a Sheets format and the simple answer is that Sheets simply isn’t built to handle the complexity of even modest Monte Carlo models. I love Sheets for simple spreadsheets and it obviously shines where you need to collaborate or share. a range of potential investment returnsĭo not to use this model for any time horizon under 10 years as there is so much potential volatility in the stock market that it will be wildly inaccurate.Ī q uick note on Google Sheets.a range of monthly investment for those years.
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