A to Z of Excel Functions: The SERIESSUM function

Welcome back to our regular A to Z of Excel Functions blog.  Today we look at the SERIESSUM function.

The SERIESSUM function

The SERIESSUM function in Excel is a useful tool for calculating the sum of a series based upon the coefficients provided.  It is commonly used in series progressions, sequences, financial modelling, engineering calculations, probabilities and statistical analyses.  Many functions / formulae may be approximated by what is known as a power series expansion.  SERIESSUM can sum it for you, e.g.

The SERIESSUM function employs the following syntax to operate:

The SERIESSUM function has the following four [4] arguments, which are all required:

• x: this is the input value to the power series
• n: this is the initial power to which you wish to raise x
• m: this is the step by which you wish to increase n for each term in the series
• coefficients:this is a set of coefficients by which each successive power of x is multiplied.  The number of values in coefficients determines the number of terms in the power series.  For example, if there are three [3] values in coefficients, then there will be three terms in the power series.

The SERIESSUM function is particularly useful when working with mathematical series that follow a specific pattern or formula.  For example, the SERIESSUM function may assist in:

• determining the total of a geometric series
• evaluating the sum of a power series.

One common application of the SERIESSUM function is in valuation modelling.  For example, you may need to calculate the future value of a series of cash flows.  By using the SERIESSUM function, you can easily determine the total value of these cash flows over time, considering factors such as interest rates, discount rates and compounding periods.

Please see my examples below: 

We’ll continue our A to Z of Excel Functions soon.  Keep checking back – there’s a new blog post every business day.

A full page of the function articles can be found here.