If the interest on your investment is paid monthly while being quoted as an annual interest rate the Excel compound interest formula becomes. Calculations go this way P 1i12 n12. Rate Function in Excel.
FV function stands for Future Value returns the future value of an investment based on periodic constant payments and a constant interest rate.
Rate Function in Excel. The argument in the FV function is. FV PV 1rn FV stands for future value. To calculate compound interest in Excel you can use the FV function.