The formula for computing Compound Interests is. To calculate compound interest in Excel you can use the FV function. R is the interest rate.
This formula must be prefaced with a sign in order to work.
Enter the formula for calculating your Interest value. Enter the formula for calculating your Interest value. If the interest on your investment is paid quarterly while being quoted as an annual interest rate the Excel compound interest formula becomes. Principal Amount1Annual Interest Rate12Total Years of Investment12 In above example with 10000 of principal amount and 10 interest for 5 years we will get 16453.