### **Custom Formulas**

Calculate custom metrics from KPI values or default Fund Forecasting reporting fields.

#### **What is a Custom Formula?**

Custom Formulas are a powerful way to create custom calculations for each portfolio company using variables from:

- KPI metrics (such as Revenue, Cash Balance)

- Default Fund Forecasting Reporting Fields (such as Current MOIC, Invested to Date, Current Post-Money Valuation)

These variables can be combined into a custom formula (or "equation") to generate a new calculated variable. Some potential use cases are calculating:

- Burn rates from collected cash balances

- Calculating revenue growth rates over the past X months or years

- Calculating revenue multiples such as **Current Post-Money Valuation / Latest Revenue**

#### **Creating Formula**

##### Step 1: Create Variables

- Go to **Formulas** from the sidebar

- Select a **Variable Type** (this could be either a KPI or a Fund Forecasting Reporting Field)

- Specify a **Timeframe:**

- If the variable is a KPI, you can set a timeframe for this KPI value:

- **Reporting Type:** Whether to use Actual or Projected KPI value

- **As Of:** The relative period in months from today for the KPI value. For e.g., if you want to use the Revenue from 12 months ago, this should be entered as 12

- **Timeframe:** Whether the relative period is in the past or the future
  - If the variable is a Fund Forecasting Reporting Field, by default, the timeframe value will be as of today
- **Variable Name:** The name of the variable to be used in the formula

- Click **Add Variable**

- Repeat the process for any other variables you intend to use in the formula

##### Step 2: Create Formula

Next, we need to create a formula using the available variables. Let's say we want to calculate the Revenue Growth Rate using the following formula:

`Revenue Growth = Revenue Today / Revenue 12 Months Ago - 1`

We've defined 2 different variables:

- Revenue Today

- Revenue 12 Months Ago

In the Formula Editor, we can then define the formula using curly braces for variables as follows:

- We’ve also specified the result format to be a percentage for the calculated growth rate

- Click **Calculate** to have Fund Forecasting calculate the formula results

##### Step 3: Calculation Results

If the formula and variables are valid, Fund Forecasting will produce a downloadable table of the formula calculation for each portfolio company.

#### **Saving Formulas**

To save this formula for easy reference in the future, click on **Save Formula** on the top right. You can either save the formula as a new formula with a custom name (such as "Revenue Growth").

#### **Loading Formulas**

To load a saved formula from a prior session, click on **Saved Formulas** and **Load Formula** for the selected formula.