From the course: Excel: Financial Modeling with Dynamic Arrays

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Dynamic vs. traditional formula comparison

Dynamic vs. traditional formula comparison - Microsoft Excel Tutorial

From the course: Excel: Financial Modeling with Dynamic Arrays

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Dynamic vs. traditional formula comparison

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- [Narrator] Let's take a look at the difference between using a traditional formula versus a dynamic array to build a simple calculation block. Here's a calculation that we commonly use in modeling. We've got some borrowing here and we want to multiply it by our return, or our interest rate across the top. So, ordinarily we would just put equals and then multiply it by the cell above, like that. We know that because of the referencing, we can't just copy it across and down like that because that simply won't work. So, what we need to do is reference it so that the column is fixed. We can put the dollar sign in front of the column and we want to fix the row so the dollar sign goes in front of the row. And once we've got that working, we can copy across and down so that it will work. Alternatively, you can use your F4 shortcut by going to equals, left arrow. Hit your F4 shortcut three times, multiplied by up arrow F4 shortcut twice, and then you can copy that across and down. Now…

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