# Escalation Calculation

#### Hydestone

##### Board Regular
I have a spreadsheet which contains pricing information which I refer to when creating estimates. When I enter the pricing information, I record the year I entered the amount. I'd like the spreadsheet to show both the escalated rate and also the escalated rate. Unfortunately, escalation does not occur at the same rate each year. I track the escalation percentages by year on a separate tab.

Any suggestions on a formula that would update the unit cost automatically?

The data is stored as follows:

Sheet Name = Unit Prices
Original price stored in column D.
Year original price entered in column E.
Escalated price stored in column F.
D E F
\$5,000 2016 \$5,408

formula would be \$5,000 X 1.03 X 1.05 X 1.06 = \$5,408

Sheet Name - Escalation Amounts
Year stored in column A
Escalation amount in column B

Ie:
2015 0%
2016 3%
2017 3%
2018 5%
2019 6%

I don't need to keep this on a separate sheet...can move to same sheet as cost information if easier.

Any suggestions?

Thanks

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#### Crystalyzer

##### Board Regular
1st, your math is wrong. 5,000 x 1.03 x 1.05 x 1.06 = 5,731.95 not 5,408.

The solution is a formula using the FVSCHEDULE, INDIRECT, and MATCH functions.

Assumption: Years and Escalation Percentages start in cell A1 on the Escalation Amounts tab

Steps
1. Create a dynamic range name called YEARS in the Escalation Amounts tab that will contain the years.
1. Formula for this range name is
Code:
``=OFFSET('Escalation Amounts'!\$A\$1,0,0,COUNTA('Escalation Amounts'!\$A:\$A))``
2. This will allow you to use this going forward without having to change any formulas when you enter the escalation percentage for 2020 and beyond.
2. Insert this formula in Cell F1 and copy down the column
1. Code:
``=FVSCHEDULE(D1,INDIRECT("'Escalation Amounts'!B" & MATCH(E1,Years)+1 & ":B" & COUNTA('Escalation Amounts'!B:B)))``

#### Hydestone

##### Board Regular
Thanks Crystalyzer. This is great.

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