All About Chart Elements of a Chart in Microsoft Excel

While working with charts in Microsoft Excel, there are many chart components that are not mandatory to mention but are quite useful. In this blog, we are going to learn everything about the chart elements in Excel.

Here we go 😎

What Are Chart Elements in Excel

There are several components that make a complete chart in excel. These include Chart titles, Legends, Gridlines, Axes, Axis titles, Data Labels, Data tables, Error bars, and Trendline. These elements making the chart are called chart elements and Yes! It is possible to make a chart without taking even one of these into the chart. This type of chart is an empty chart and is completely useless but excel allows us to make this type of chart.

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Introduction to Charts in Microsoft Excel

When it comes to analysis and decision-making from the data in any business or company, numerical data in any form would make it difficult. Excel solves this problem with the use of visual representation for the numerical values using Charts in Excel. Most people think that excel is all about crunching rows and columns in the form of data but No! There is so much more to do with the data when it comes to its visual representation.

What are Charts in Excel

A chart is a visual representation of data in the form of bars, lines, pies and so much more. Displaying the data in an organized way helps the team to come up with business decisions faster. Charts help us to summarize a relationship between the numerical values, business patterns, trends that might go unnoticed if there were just numerical values used to represent them.

Table of Contents
  1. What are Charts in Excel

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XIRR Function in Excel – IRR for Irregular Cash flows

In our previous blog, we learned the IRR Function of Excel. In Finance, whenever we want to get the IRR when consecutive cash flows have a difference of 1 complete year between them, IRR Function is used. XIRR function in Excel works like IRR function, gives us an internal rate of return with a slight difference of an additional input parameter. Let us go to the depth.

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When to Use XIRR Function of Excel

The XIRR Function of Excel gives the internal rate of return for a project when the series of cash flows is not within regular time intervals. We need to mention the dates for each cash flow whether it is money received or deducted.

The XIRR Function comes under the category of Financial functions of Excel.

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FV Function of Excel – Find Future Value of Investment

When working with finances, we might feel the need to know the future value of a business investment after a certain period of time having a constant rate of interest. When saving money in a bank’s savings account that provides a constant rate of interest, we feel the need to know what would be the future value of my savings after 10 years from now. We can calculate it by adding interest after each accounting period to the savings, but this would be a long calculation. Excel provides us with the FV function to save us from the trouble!

When to Use FV Function of Excel

The word FV represents “Future Value”. The FV function is useful to get the future value of an invested money having constant payments, constant rate of interest, and low risk.

The FV function is categorized under the Financial Functions of Excel.

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AMORLINC Function of Excel – Finding the Depreciation of as Asset

Depreciation means the decreasing of the worth of an asset with time due to its wear and tear. Any valuable thing costs the original price when new, but its value decreases with time at a particular rate. In other words, we can say that the value of an asset decreases at a fixed rate annually. This is when the AMORLINC Function comes into its usage. In this tutorial, we would learn the AMORLINC function for calculating depreciation in excel.

Here we go 😎

When to Use AMORLINC Function of Excel

The AMORLINC function finds the depreciation of an asset for each accounting period. The function can calculate the linear depreciation at a fixed rate depending on the purchase date of the asset.

The AMORLINC function can be categorized under the Financial functions of Excel.

Syntax and Arguments

=AMORLINC(cost,date_purchased,first_period,salvage,period,rate,[basis])

The following points explain the function arguments for AMORLINC Function.

  • cost – The argument refers to the value of asset at the beginning.
  • date_purchased – The date on which asset was purchased.
  • first_period – The date after which first period starts.
  • salvage – The lowest value of asset at the end of its useful life.
  • period – This refers to the accounting period.
  • rate – This is the rate of depreciation.
  • [basis] – This is the method for day count. It is an optional argument. It can have the following values.

Points to Remember About AMORLINC Function

The following points should be kept in mind before actually using the AMORLINC function of Excel.

  • The defualt value of basis is 0.
  • The Accounting period starts from 0 i.e from date of purchase to the first period date.
  • date_purchased and first_period must be valid excel dates. The excel dates start from 1 January 1900. All the dates before that would be invalid and return #NUM! error.
  • Salvage cannot be greater than cost. In that case, AMORLINC function will return a #NUM! error.
  • The depreciation is calculated without the use of depreciation coefficient.

Read moreAMORLINC Function of Excel – Finding the Depreciation of as Asset

CHOOSE Function in Excel – Choosing Value according to Index

The CHOOSE function is a very powerful function of Excel. The function is used in many cases like creating raw data for dashboards, to get month from dates, etc. Let us see the usage of this function.

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When to Use CHOOSE Function of Excel

The CHOOSE function is used to choose a value from a list of values based on the index of that value. The function returns the value that corresponds to the index or the serial number of that value.

The CHOOSE Function can be categorized under the Lookup and Reference Functions of Excel.

Syntax and Arguments

=CHOOSE(index, value1, [value2])

The below points will explain to you the required function arguments for CHOOSE Function of Excel.

  • index – It is the serial number of the value that we want to get as the function result. It can be a serial number or an array of numbers.
  • value1 – This is the value returned by the function if the index is one. It can be a number, text string, a formula, cell reference or a range of cells.
  • [value2] – The function returns this value if the index is 2. This is an optional argument.

There can be a total of 254 values from which only value1 is a required function argument.

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AMORDEGRC Function of Excel – Linear Depreciation of an Asset

In an accounting system, we might be willing to calculate the depreciation for the each of accounting periods. In this tutorial, we would learn to use the AMORDEGRC function in excel for calculating depreciation in excel. The AMORDEGRC formula in excel helps to find depreciation for each of the years (upcoming).

The following graph explains the linear depreciation of the asset. The slope of the graph is negative. In conclusion, we can say that the value of the asset decreases with time.

Linear depreciation graph

Let’s being with excel AMORDEGRC formula. Here we go 😎

When to Use AMORDEGRC Function of Excel

The excel AMORGEGRC function calculates the linear depreciation of an asset with each of its accounting periods. In other words, the function uses the depreciation coefficient to find resultant depreciation. The assets can have a different rate of depreciation.

The AMORDEGRC function is categorized under the financial functions of Excel.

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WEEKNUM Function of Excel – Finding Week Number

When we are working with dates in Excel, we might wish to know in which week of the year, this date falls. For example, what if I want to know in which week of the year my birthday comes?. This is going to be a very long calculation if I started counting the weeks from the beginning of the year. Thankfully, we don’t have to do it by ourselves when Excel has introduced the WEEKNUM Function.

In this tutorial we would learn how to calculate the week number of the date using the WEEKNUM formula in excel.

Here we go 😎

When to Use WEEKNUM Function of Excel

The word WEEKNUM represents “Week Number”. The function finds the number of the week on which a particular date falls. There are 365 days in a year (366 if leap year). When we divide 364 by 7 we get 52 complete years. The left 2 days might fall in the beginning or at the end of 52 complete weeks making the function to return the week number from 1 to 54.

The WEEKNUM formula forms part of the Date/Time Excel Function group.

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