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how to compound interest calculate in excel. Amount 1. In this case C2 contains the value 10180 so the Excel worksheet will calculate 10180 x 108 and will display 10917.
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R is the annual interest rate as a decimal or a percentage. FV PV 1rn where FV is future value PV is present value r is the interest rate per period and n is the number of compounding periods. This example assumes that 1000 is invested for 10 years at an annual interest rate of 5 compounded monthly.
This doesnt give you the compounded interest which generally gets lower as the amount you pay decreases.
In the example shown the formula in C10 is. A more efficient way of calculating compound interest in Excel is applying the general interest formula. How To Calculate Compound Interest in Excel When Interest is Paid Quarterly P is the initial amount invested. All we did was multiplying 100 by 108 5 times.
