Select a blank cell for example Cell E3 enter the below formula into it and press the Enter key. In our example the formula is A2 1B2 where A2 is your initial deposit and B2 is the annual interest rate. 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.
Here B1 B2 B3 and B4 are the cells in excel.
The compound annual growth rate CAGR shows the rate of return of an investment over a certain period of time expressed in annual percentage terms. Amount 1. Select a blank cell for example Cell E3 enter the below formula into it and press the Enter key. Ending Investment Start Amount 1 Interest Rate n Where n Number of years of investment.