For example if you earn 6 on 1000 you will then have 1060. Did you know you can use Excel to figure out how much something is going to cost or how much money youll get in the future assuming some fixed interest rate. Assume you put 10000 into a bank.
A more efficient way of calculating compound interest in Excel is applying the general interest formula.
We will initiate writing the FVSCHEDULE function into cell B6. The concept of compounding interest is pretty simple really its simply earning interest on your principal investment but then continuing to earn interest on top of that principal and the previous interest that youve already earned. The formula now becomes. 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.