N the number compounding periods per year n 1 for annually n 12 for monthly etc t the time in years or fraction of years multiples of 1n. Suppose we have the following data to calculate compound interest in excel. Yearly Compound Interest Formula For calculating yearly compound interest you just have to add interest of the one year into next years principal amount to calculate the interest of the next year.
A the future value of the investmentloan including interest P the principal investment amount the initial deposit or loan amount r the annual interest rate decimal n the number of times that interest is compounded per unit t t the time the money is invested or borrowed for.
A Monthly compound rate P Principal amount R Rate of interest N Time period. A P 1 rnnt The compound interest formula solves for the future value of your investment A. Monthly Compound Interest Formula P 1 R 1212t P. A the future value of the investmentloan including interest P the principal investment amount the initial deposit or loan amount r the annual interest rate decimal n the number of times that interest is compounded per unit t t the time the money is invested or borrowed for.