The formula now becomes. Microsoft Excel has inbuilt function names as FV or Future Value by which we can calculate the future value in terms of Compound Interest Applicable loan with interest monthly EMI with one formula. Type IPMT B2 1 B3 B1 into cell B4 and press Enter.
Suppose we have the following information to calculate compound interest in a table excel format systematically.
Type IPMT B2 1 B3 B1 into cell B4 and press Enter. In our example the formula is A2 1B2 where A2 is your initial deposit and B2 is the annual interest rate. Supposing there is 1000 initial principal in your account with 8 interest rate per year and you want to calculate the total interest in ten years later. Annual compound interest - Formula 1 An easy and straightforward way to calculate the amount earned with an annual compound interest is using the formula to increase a number by percentage.