From the course: Excel: Financial Modeling with Dynamic Arrays

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Calculating expenses

Calculating expenses - Microsoft Excel Tutorial

From the course: Excel: Financial Modeling with Dynamic Arrays

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Calculating expenses

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- [Instructor] Now that you've projected your revenue, it's time to work on your expenses for the business. The assumption for the baristas' annual salaries is $50,000, so your annual projection should be divided by the 12 months of the year to arrive at the monthly amount. The salary increases by 5% every 12 months, and other on costs are calculated at 25%. So let's jump back to the model and get started on working through it. So coming down to our expenses here, we have our annual barista salary. So we need to divide that by 12. That is not spilling across, but once we add our inflation, that will force it to spill across the range. So we'll say multiplied by 1 plus our inflation amount, closed bracket, to the power of our indexation helper row. And that will spill across. Just go across and make sure that that is indexing correctly. Okay, looks good. And now we have our 25%, which we can multiply by the monthly salary. Okay. And we can just add the two together, like that. Okay. So…

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