Compound Interest A P1 rnnt. You can follow this same logic to create the formula that calculates year 3 interest in cell E2 D2 x 108. How to calculate compound interest in Excel To compute the compound interest in Excel for different time periods all you have to do is convert the formula above into a relatable formula in Excel.
This formula looks more.
The interest portion of a loan payment can be calculated manually by multiplying the periods interest rate by the remaining balance. But Microsoft Excel has a special function for this - the IPMT function. You can follow this same logic to create the formula that calculates year 3 interest in cell E2 D2 x 108. Calculate compound interest by Function in Excel In addition to the formula you also can use Function to calculate the compound interest.