Investment Analysis Template for Excel (Plus How to Guide)

Investments are great for allowing your money to work for you in creating more money in profits, but it is important that you analyze all aspects of the transaction to ensure your investments does not turn into a profit depleting liability. An investment that is properly analyzed with a Investment Analysis Template will perform as expected, with minor unexpected interruptions and a profitable return. An investment that is under-performs in terms of ease, profitability and expenses is most likely the result of poor or insufficient analysis.


It is obvious that research, comparisons and forecasting trends makes the difference between investing in an asset or liability.

How to Analysis an Investment

Just as each investment is different, so are the methods that are most effective at providing an accurate analysis using the Investment Analysis Template. When investing in a business, it is necessary to perform research and gather information concerning the past performance of the business in order to determine the overall profitability of the entity and set reasonable expectations. It is also important compare past performance against future trends in order to determine the level of potential growth and expansion you can anticipate in order to compound the return on your investment. But the profits and performance can not be the limited scope of your investigation. Liabilities and expenses associated with the operation of the business must be considered such as payable accounts, debts, operational expenses, overhead expenses, adjustable profit margins and consumer demand for the product oar services offered. Equally, the sustainability of the entity must be considered in order to determine the investment strategy and the timing of the onset.

When investing in real estate, you must comprehend the full scope of the investment which means not only analyzing the property you are buying, but comparing similar properties that have sold and are in the process of selling in order to determine the properties current and future value. Since value is determined by the price that a person is willing to pay for something, analysis of the initial investment, including purchase price and improvement costs, must be compared to the projected selling price and profit margin.

Furthermore, in order to properly compute the potential profit using the Investment Analysis Template, associated costs must also be considered. Expenses such as loan fees, attorney’s fees, real estate commissions and carrying costs must be added to the calculations in order to realize a complete analysis. Excluding or overlooking these expenses could significantly alter the final calculations- enough to convert a profitable investment into a costly liability.

When considering investment vehicles such as stocks, bonds or annuities when using the Investment Analysis Template, acquisition costs are important, but one of the hidden attributes that influence the profitability is associated risks that have the potential to deplete the investment. Investment products that feature higher returns often involve increased risks, so proper review of the allowances and mitigation techniques that cap and/or limit losses is vital. The rate of return on the investment must be considered in order to ensure the time-line meets your immediate and long term goals. Otherwise, no matter how profitable the return is, it does not serve the intended purpose if the profit releases are not in line with the follow up strategy. Back-end fees can affect the bottom line and eat away at the profits, so careful analysis of brokerage fees, early withdrawal fees, and applicable penalties must be added to the calculations, Finally, the liquidity of the investment vehicle will also contribute to the accumulation of fees, as accessing the money ahead of schedule can lead to fines and penalties that may significantly decrease the gain in profit.

Important Points To Notice While Investing

Before you jump headfirst into an investment, it is smart to take the time to consider a few important points before making an impulsive decision. These considerations will make all of the difference regarding your expectations and performance. First and foremost, consider all of the fees associated with the transaction. Many of the fees charged by brokerage firms and financial professionals are disclosed poorly and are highly visible and straightforward. But in the fine print of the documents pertaining to the actual investment vehicle, fees may be hidden in the text and difficult to detect or calculate based on variable factors and small prints. Not only should the fees pertaining to various circumstances be analyze, but the fees that are charged pertaining to actions such as diversification or liquidation must also be reflected on the Investment Analysis Template.

It is also to note that the consequences of overconfidence can cause split-second mistakes or miscalculated judgments that can be costly, even for professional investors. While the concept is speculative, the manifest results are tangible, as all investments require the adoption of some level of risk- whether obvious and blatant or subtle. The best way to overcome this obstacle is to remain present in the moment and analyze data objectively. By removing emotion and attachment from the equation, elevation can be done based on facts and figures and not driven by thoughts and reactions which have proven time and time again to be extremely dangerous when investing.

Techniques for Successful Investment

In order to conduct successful investments, there are a few simple techniques that must be employed. First and foremost, your generalizations should be logical and not responsive. One of the biggest mistakes that investors make is to allow their emotions to dictate their selection of investment vehicles. Statements, reports and reliable conclusive data derived from the investment analysis template should always remain prevalent as the important factors of consideration.

Also, leveraging the expertise of professionals will ensure that the analyst perform using the Investment Analysis Template covers all aspects of the transaction, even those you may have unknowingly overlooked. Thirdly, paying attention to financial news and current events may also provide indications or warnings when making investments. While some occurrences directly affect your investments, others effective in directly. This means that it is vital that you keep your ears open for news reports and coverage of stories that may influence the performance of your investment product.


When using an Investment Analysis Template, try to use as many fields as possible. While some of the information may be readily accessible, of information may require extensive research and investigation. Regardless of how accessible the information is, a complete compilation requires that all of the various influences are identified, properly considered and effectively calculated into a comparison of the investment. Also, getting familiarity with the industry or business sector will tend to your investment will provide a well-rounded understanding of how the investment operates and what is reasonable to be expected. Setting unreasonable expectations can lead to disappointments, and the eminent loss of profits, so it is important that the proper information is reviewed in order to gain a complete picture. Here is a sample spreadsheet to help you with your analysis task.


 Business Investment Analysis Template:

Business Investment Analysis Template

Note: This template is not associated with