In business, every decision counts. A decision made now could have huge impacts in the future. This is especially important when thinking about a company’s finances.
Financial modeling is when the expenses and earnings of a company are closely looked at. This is done to see the possible impact of decisions that are made in the future. Financial modeling is also done to determine the impact of future events.
For example, a business might run financial models to determine how a recession would impact the value of their stock.
Featured Programs
- Yonsei University Valuation and Financial Analysis For Startups Specialization
- Wharton University Finance and Quantitative Modeling for Analysts Specialization
- Linkedin Learning Excel for Corporate Finance Professionals
Disclaimer: Some courses may include an affiliate link. Courses were chosen first based on the methodology with affiliate links only added after the ranking was complete.
If it sounds like financial modeling is complex, it is. But you can start learning about it there are many online financial modeling courses to get you started.
Financial modeling courses online come in many forms. There are free courses. There are courses with a small fee. Some courses cost a good deal of money. Some courses are very specific, like an Excel modeling course. Others are broad, like an introduction to financial modeling course.
You can also find many courses for beginners. Intermediate and advanced financial modeling courses online are also common.
Finding the right online financial modeling courses means you have to look at them with a critical eye. To help you, we’ve created a methodology for ranking these courses using these factors:
- Affordability
- Learning level
- Accessibility
- Certification
Each of these factors is important on their own. However, when used together, they give you a more complete picture of a class. You can then find online financial modeling courses that are worth your time.
Let’s take a deeper look at our methodology.
Methodology to Determine the Best Online Courses for Financial Modeling
We’ve developed a four-factor methodology. This allows us to easily rank the best online courses for financial modeling. There are several benefits to this.
First, you get to see how each factor compares between each course. This lets you quickly see which classes are the best based on any one factor. For example, you can quickly compare courses based on price.
Second, using four factors allows us to create a ranking that is based on specific factors. The courses listed below are ranked strictly according to the points awarded based on this methodology. This takes personal preference or bias out of the equation.
Third, using four factors allows us to give you a complete picture of a course. This is the most important benefit. It’s necessary to take multiple aspects of a course into account to make an informed decision. This methodology enables you to do just that.
Below is a closer examination of each of these factors.
Affordability
The price of financial modeling courses online is usually the most important factor for students. College courses are expensive. So, finding affordable options online can help you stretch your dollar.
Given that price is the most important factor for most students, we’ve made it the largest part of our rankings system. Below is an outline of how points are awarded based on price:
- Free: 6 points
- Under $10: 5 points
- $11-20: 4 points
- $21-30: 3 points
- $31-40: 2 points
- $41 and above: 1 point
As you can see, free courses are awarded the most points. As the price of a course increases, its points decrease.
It’s important to note that just because a course is free doesn’t mean it’s a good course. Instead, it is necessary to look at the other three factors to get a complete picture of the quality of a course.
Learning Level
We also base points on the learning level of the course, as follows:
- Advanced: 3 points
- Intermediate: 2 points
- Beginner: 1 point
Advanced courses are awarded more points. This is because of their potential to help you advance your learning. That is, advanced courses are often in a specialized area. This involves deep learning on a few topics.
By contrast, beginner courses tend to be “survey” courses. This means many topics are studied, but not in much depth. While these are great for getting your feet wet, you don’t typically come away from a beginner course with a large set of skills.
This isn’t to say that there aren’t many excellent beginner courses. There certainly are. But, ultimately, advanced courses have more to provide in terms of helping you develop real, actionable skills in financial modeling.
Accessibility
Your ability to access a class is a critical factor to consider. Some courses offer you instant access when you enroll. Others require a waiting period. Some courses have to be completed in a certain amount of time. Others offer lifetime access to course materials.
While a course might look great in terms of the other three factors listed here, if it isn’t accessible to meet your needs, there’s no point in taking the class!
Instead, when examining online financial modeling courses, be sure to take into consideration whether you can learn on the go. Also think about what the deadlines of the course are like. Are there downloadable resources? Can you access the course on your phone? These are important things to think about.
We score this metric as follows:
- High accessibility: 3 points
- Moderate accessibility: 2 points
- Low accessibility: 1 point
Certification
Some financial modeling courses online are basic classes. These courses give you introductory information. Others offer more in-depth learning. Still others give you a chance to get a certification.
Certification isn’t required to get a job in financial modeling. But, it certainly doesn’t hurt. Professional certifications show employers that you have an added layer of knowledge. You have more skills too. A certification also tells people that you’re willing to go above and beyond what’s necessary.
Some courses also offer completion certifications. While these are not provided by professional organizations, they can still be beneficial to you. In completing a course, you show your ability to learn new skills and meet deadlines. These are attractive features for any employer.
This factor is scored as follows:
- Offers a professional certification: 2 points
- Offers a completion certification: 1 point
- No certification: 0 points
Using these four criteria, we’ve ranked the ten best online financial modeling courses. Get information about each course below.
Ranking the Best Online Courses for Financial Modeling
#10: Building a 3 Statement Financial Model
This is an intermediate course from the Corporate Finance Institute. It is a step-by-step class that teaches you all aspects of financial modeling.
You’ll learn how to build a financial model from the start. Excel is used to create the models, so experience with that program is a must. You’ll create the model in your own file, but you do so while following along with video instructions.
You can expect to learn about the following as well:
- Forecasting revenues
- Creating balance sheets
- Modeling debt and financing
This is a short course. You can expect to spend about 5.5 hours completing it. It is one of nine core courses in the CFI financial analyst training program.
Points: 6
Affordability: $197.00 (at the time of writing)
Learning Level: Intermediate
Accessibility: High. Begin the course immediately. All materials are 100 percent online. You can access the course 24/7 for flexible learning.
Certification: No. This course helps fulfill only part of the requirements for certification.
#9: Mining Valuation & Financial Model
This is an advanced financial modeling course. The course materials are from the Corporate Finance Institute. It focuses on financial modeling for mining companies.
You’ll learn a variety of essential skills in this class. This includes how to:
- Make assumptions
- Calculate financials
- Conduct valuations
You will also learn how to create output charts and do a sensitivity analysis.
This course offers a chance to participate in a case study as well. You’ll use real mining valuation information. Using that information, you’ll build a forecast and value the asset.
Points: 7
Affordability: $197.00 (at the time of writing)
Learning Level: Advanced
Accessibility: High. This is a self-paced course. You get immediate access when you enroll. All materials are 100 percent online.
Certification: No. This course can be used toward getting a certification, but a certification is not available just from this class.
#8: The Real Estate Financial Modeling Bootcamp
This financial modeling online course is from Udemy. It is a beginner course. This class will teach you the skills needed to work in the real estate private equity industry.
Since this is a beginner course, anyone can take it and find success. This includes college students. People that want to switch careers will also find value in this class.
You can expect to learn about a range of topics, including:
- Core fundamentals of Excel financial modeling
- How to increase your real estate profits
- How to project real estate investment returns
By the end of the class, you’ll be able to accurately and quickly model potential real estate transactions. With seven hours of downloadable videos and other offline resources, you can easily learn these new skills.
Points: 9
Affordability: $11.99 (at the time of writing)
Learning Level: Beginner
Accessibility: High. You get instant, lifetime access to the course. The course is also available on mobile and TV. There are many downloadable resources as well.
Certification: Yes. A certificate of completion is available.
#7: VBA for Project Finance Models – Circular Debt Calculations
This advanced course from Udemy is for skilled financial workers. It’s designed to teach you skills that will help you save time and streamline your workflow.
You’ll explore best practices in financial modeling. You’ll primarily learn how to solve circular models for any input.
This is done by focusing your attention on the following:
- Copypaste macros
- Copypaste-goalseek loops
- Backsolve methods
By evaluating these and other concepts, you’ll learn how to assess tradeoffs when selecting a standard or advanced solution.
Since this is an advanced course, it is recommended that students have at least six months of financial modeling experience.
Points: 10
Affordability: $30.00 (at the time of writing)
Learning Level: Advanced
Accessibility: High. Udemy courses come with full lifetime access. You can begin the course immediately. There are many resources for offline learning as well.
Certification: Yes. A certificate of completion is available.
#6: Beginner to Pro in Excel: Financial Modeling and Valuation
Students that want to learn intermediate skills should consider this class from Udemy. It is a complete guide to learning financial modeling in Excel.
Using this course as a guide, you can go from beginner to advanced in about 13 hours of tutorials. The tutorials in this top online financial modeling course include lessons on:
- Financial modeling in Excel
- Company valuations
- Profit and loss statements
This class comes with hundreds of resources. This includes over 12 hours of on-demand video. There are also 10 articles available for download.
There are 22 lessons in this course. Each lesson is short. You can easily complete a lesson in a few minutes’ time.
Points: 10
Affordability: $17.99 (at the time of writing)
Learning Level: Intermediate
Accessibility: High. This course is available instantly. There are well over 500 downloadable resources. You also get access to the class for life.
Certification: Yes. A certificate of completion is available.
#5: Financial Modeling for Business Analysts and Consultants
This Udemy course is designed for beginners. It covers the basics of creating financial models. More specifically, it looks at financial modeling for consultants and business analysts.
Using what you learn in this class, you’ll be able to create sound financial models. This includes making them standardized for outside use. It also means making them easy to understand.
You’ll explore many topics, including:
- Financial models vs business models
- Bottom-up approach
- Models profits and losses
There are also units on working capital and cash flow modeling.
To take this top financial modeling course, you need basic Excel skills. You should also have a good understanding of economics or finance.
Points: 10
Affordability: $14.99 (at the time of writing)
Learning Level: Intermediate
Accessibility: High. The course is available for life. You can begin the class immediately. There are also dozens of resources you can download.
Certification: Yes. A certificate of completion is available.
#4: Valuation and Financial Analysis For Startups Specialization
This course is a specialization offered by Coursera. It is a collection of five courses. Course materials are from Yonsei University.
This online class on financial modeling is intended for beginners. The focus is on common methods for valuing startups. This includes discussions of:
- Valuing the founder’s ownership
- How to determine the financial health of a startup
- How to estimate future earnings and value
Additionally, two investment criteria are taught. This includes Net Present Value (NPV) and Individual Rate of Return (IRR).
Since this is a beginner course, there are no requirements to enroll. It is a long class. Most students need six months to finish. However, this is based on working just two hours a week. You can finish the course much faster if you have more time to complete assignments.
Points: 11
Affordability: Free to enroll. A fee (usually around $50) might be required. Other costs may be involved if you participate in a specialization. Learn more about Coursera pricing. This course is scored as a free course.
Learning Level: Beginner
Accessibility: High. This course offers a flexible schedule to meet your needs. All course components are completely online for easy access.
Certification: Yes. A certificate of completion is available.
#3: Finance & Quantitative Modeling for Analysts Specialization
Beginner finance modelers can learn quantitative modeling in this specialization course. It’s provided by Coursera and the University of Pennsylvania’s Wharton School of Business.
The goal of this course is to equip you with many different skills. You begin by learning the basics of quantitative modeling. From there, you work with spreadsheets to analyze data. Along the way, you’ll be introduced to:
- Corporate finance
- Finance fundamentals
- Corporate decision-making
This specialization includes four classes. You’ll end the course by completing a hands-on project. After each class and the hands-on project are completed, you’ll earn a certificate.
Points: 11
Affordability: Free to enroll. A fee (usually around $50) might be required. Other costs may be involved if you participate in a specialization. Learn more about Coursera pricing. This course is scored as a free course.
Learning Level: Beginner
Accessibility: High. You can start instantly with complete access to the course online. You can determine your own deadlines to improve your ability to complete the course.
Certification: Yes. A certificate of completion is available.
#2: Excel for Corporate Finance Professionals
This is an intermediate class from LinkedIn. It is designed for corporate finance professionals. It is a hands-on course. This means you will take part in several projects to more quickly learn Excel.
Throughout this top online financial modeling course, you’ll learn how to:
- Pick corporate investments
- Determine cost of capital
- Perform operational budgeting
You’ll also learn about weighted average cost of capital and how to estimate it.
The exercises for this course include downloadable files. This gives you added resources for learning practical financial modeling skills.
Points: 11
Affordability: Free one-month trial. The course costs $39.99 after the free trial. Scored as a free course. Try a free trial for Linkedin Learning.
Learning Level: Intermediate
Accessibility: High. Begin studying immediately. You can download a lot of resources for working offline. Transcripts and exercise files are provided online.
Certification: No
#1: Business and Financial Modeling Specialization
This beginner course is offered by the Wharton School of Business. This best financial modeling course is provided on Coursera.
This specialization includes five classes. The course begins with a unit on quantitative modeling. From there, you get to explore topics related to:
- Spreadsheets and models
- Modeling risks and realities
- Using models to make decisions
The last class in this comprehensive course is a capstone project. The project requires you to recommend a business strategy based on a data model you’ve developed.
The Wharton School of Business is considered one of the best in the world. This course is taught by six Wharton professors.
Points: 11
Affordability: Free to enroll. A fee (usually around $50) might be required. Other costs may be involved if you participate in a specialization. Learn more about Coursera pricing. This course is scored as a free course.
Learning Level: Beginner
Accessibility: High. Access to the course is instant. You can also set and reset deadlines as needed to adjust for your schedule.
Certification: Yes. A certificate of completion is available.
Frequently Asked Questions
What is a financial modeling course?
In general, a financial modeling course teaches you how to use tools. These tools are used to forecast the outcomes of financial events.
More specifically, financial modeling courses focus on using Excel. Excel is used to build models. These models provide possible solutions to actual financial problems. It’s important to note that a “problem” isn’t a bad thing. Instead, “problem” refers to the mathematical meaning. The financial model seeks to answer financial questions.
For example, pretend you’re in a basic financial modeling course. You might learn how to use Excel to create a forecast of a company’s profits. That forecast would try to predict profits in five years.
When taking online financial modeling courses, you are often asked to show an ability to use financial models. Not only that, but you should also be able to use the models to perform a variety of tasks. This includes:
- Adding variables. This might be inputs, outputs, and calculations in Excel.
- Producing cash flow statements. These are based on the financial model.
- Creating balance sheets. Again, based on the financial model
- Organizing profit and loss statements. These are based on the financial model as well.
Financial modeling courses online also teach you how to develop relationships between variables. So, when you change an input for one of the variables, a chain reaction occurs. As a result, one or more outputs change.
For example, say you’re modeling future revenue of a company. When you change the variable for growth rate, the volume of sales also changes. When that variable changes, the revenue changes as well.
In other words, you can explore many different outcomes using a financial model. Sometimes, all it takes is changing a single variable. Doing so can create a large change in other variables.
Likewise, in an Excel modeling course, you’ll explore how you can use financial models to forecast future events. So, assume you’re forecasting the cash flow for a company. You’re looking ten years into the future. You can use a financial model to predict what the cash flow might be using various assumptions:
- If the rate of growth continues unchanged
- If the rate of growth decreases
- If the rate of growth increases
These are all very basic concepts you might learn about in a beginner online financial modeling course. But what about intermediate and advanced courses?
Usually, the higher the learning level of a course, the more specific the topics. So, you wouldn’t study a lot of different topics with not much depth. That’s what happens in beginner courses. Instead, you would study specific topics in a lot of depth.
More advanced financial modeling courses online might focus on Excel or making valuations. They might center around logic or accounting. It just depends on the specific class.
Despite the differences in what online financial modeling courses teach you, one thing remains the same. That is, the end goal is to learn the skills needed to help other people make better financial decisions.
What is the best financial modeling course for beginners?
Based on our rankings, the best beginner financial modeling course is Business and Financial Modeling Specialization. There are several reasons for this.
First, the course was developed by the Wharton School of Business. It is one of the best business schools in the world.
Second, it’s free to enroll. There are fees for the specialization. But it is still a very affordable alternative when compared to getting a college degree.
Third, this course is very accessible. You get instant access to the class when you enroll. All course materials are easily accessed online 24/7. You can also adjust the deadlines for the course to meet your specific scheduling needs.
Wharton also offers a Finance and Quantitative modeling for Analysts Specialization that ranks highly on our list. This class is also free to enroll. It offers excellent accessibility as well. Both classes also offer certificates of completion.
As noted in another question and answer, certificates of completion don’t hold as much weight as a professional certification. However, they still validate your knowledge and skills. A certification from one of these courses could prove valuable when applying for jobs.
Who should take a financial modeling course?
There are many different types of people that might take financial modeling courses online. High school students might take a course to get extra knowledge and skills before entering college. College students would take a financial modeling course if they major in finance or other related fields.
But financial modeling courses aren’t limited to just students. Instead, people that want to start a career in finance should take these courses as well.
For example, let’s say you want to be an investment banker. As such, you need to have strong financial modeling skills. To get those skills, you could take an introductory financial modeling course. After that, you could take an intermediate course on another topic, like making valuations. From there, you might take an advanced class on creating project finance models.
Also, people that already work in the finance industry are good candidates for taking a class in financial modeling. Learning about new modeling tools can help this group get a leg up on the competition for promotions within their company.
How do I get certified in financial modeling?
There are many different financial modeling certifications. Getting certified in financial modeling requires a few different steps. The steps depend on the certification you want.
For example, if you want to be a certified Financial Modeling and Valuation Analyst (FMVA), you have to complete the following steps:
- Successfully complete 9 required courses
- Successfully complete 3 elective courses
- Finish all video-based chapters
- Finish all course exercises
- Take all course quizzes
- Earn a minimum passing grade of 80% on each course assessment
So, this certification is very much course-based. But others are quite different.
The Level 1 Advanced Financial Modeler (AFM) certification only requires that you successfully pass an examination.
The exam is four hours long. It revolves around a case study of a company. You get an Excel file that has three years of the company’s financial statements. You then have to build an interactive financial model for the company. This includes an income statement, a balance sheet, and a cash flow statement.
As another example, to become a Certified Financial Modeling Specialist, you must pass a lengthy exam. Like the Level 1 Advanced Financial Modeler certification discussed above, this certification helps you verify your financial modeling skills. Doing so can help you get a job in the finance industry. A certification could also help you get promoted at your current job.
These are professional certifications. They are not certificates of completion.
Many financial modeling courses include completion certifications. Completion certifications can provide value to you. But they aren’t as valuable as a professional certification. Professional certifications require a large expense of time and effort. They often require a fee to apply as well.
What are some examples of financial modeling?
Financial modeling is used by many professionals. This includes people in finance and accounting. Workers in investment banking also make use of financial models.
Regardless of the area of work, there are some common types of financial modeling:
Discounted Cash Flow (DCF) Model – These models are used by financial analysts. They calculate the current value of a company. They also predict how much money might be made in the future. This model can be used to predict the value of a company’s shares. It might also be used to value a cost-saving program within the company. If you want to predict the value of anything related to cash flow, this is the model to use.
Three-Statement Financial Model – This model focuses on three parts. These parts are the income statement, balance sheet, and cash flow statement. The model is used to forecast these things in the future. It gives a wide view of a company’s financial history. It also shows the company’s current financial standing. The company’s future finances are also part of the model. It is used to see how a company’s financial future might change based on different variables. This is by far one of the most common financial models.
Comparable Company Analysis (CCA) Model – This is a basic model used for valuing a company. It uses metrics from other businesses to provide a forecast. Those businesses are of similar size in the same industry. Using their data allows you to make an educated guess about the future value of your company.
The Sum-of-the-Parts Financial Model – This is a simplified model used by large organizations. The model values each division or subsidiary within the company. This is done individually. Then the model adds each division’s value together to provide a prediction of the company’s financial future as a whole.
The Merger and Acquisition (M&A) Model – As the name suggests, this model predicts the impact of a merger or acquisition between companies. Specifically, it looks at the earnings per share (EPS) of the new company. The model takes that value and compares it to the company’s current EPS. This makes this model very helpful for executives that must decide if a merger or acquisition is a good idea.
What are the education requirements to be a financial modeler?
There is no widely available financial modeling degree at this point in time. However, if you want to be a financial modeler, having a bachelor’s or master’s degree is important.
Usually, people that become financial modelers have an educational background in one of the following:
- Business
- Accounting
- Finance
- Mathematics
Having a degree in engineering is also good preparation for a career as a financial modeler.
Some financial modelers have a bachelor’s degree. A bachelor’s degree usually takes four years to complete. Often, these programs require completion of about 120 semester credits of work.
When you get a bachelor’s degree, about half of your credits are general education requirements. For example, these would be math, science, and humanities. The other half of the credits are in the major area. So, if you major in business, about 60 credits would be business courses.
If you want to become a financial modeler with a bachelor’s degree, focus on courses that apply toward financial modeling. Take multiple classes in Excel. Take finance and math courses too.
Some finance companies prefer workers to have master’s degrees. Likely the most typical master’s degree in this field is a Master’s of Business Administration (MBA).
A master’s degree can take anywhere from 2-4 years to complete. The time frame depends on several factors, including the number of credits required and whether you study part-time or full-time.
In a master’s program, you focus on your area of specialty. So, where about half of the credits for a bachelor’s degree would be in your major area, virtually all master’s courses are in your major.
There are some instances in which you could become a financial modeler without a college degree. Some finance careers don’t require formal education. Instead, if you can demonstrate the needed knowledge and skills, you could be hired by a company that believes in your potential and gives you an opportunity to learn on the job.
What is the typical salary for a financial modeler?
According to Glassdoor.com, financial modelers make an average of nearly $99,000 per year. It is a well-paying career.
The pay range for this job is quite broad. On the low end, you can expect to make around $63,000 per year. On the high end, you could make over $124,000 per year.
The salary you make depends on several factors. First, if you have very little experience, you will likely be on the lower end of the pay scale. But, as you gain experience on the job, your salary will likely increase.
A second factor that impacts salary is educational experience. As noted above, not all jobs in finance require a degree. But, generally speaking, workers with degrees earn more money than those who don’t.
Third, your place of employment can greatly influence your salary. If you work for a large Wall Street firm, you will likely be at the top of the pay scale. But if you work for a small company or a startup, you will probably earn far less each year.
OCR Staff
May 2020
Disclaimer: Some courses may include an affiliate link. Courses were chosen first based on the methodology with affiliate links only added after the ranking was complete.
Other Rankings of Interest: