Skip to content
xlsoffice. All Rights Reserved
  • Home
  • Excel For Beginners
  • Excel Intermediate
  • Advanced Excel For Experts

Lookup and Reference Examples

  • Complete List of Excel Lookup and Reference Functions, References and Examples
  • How to get relative row numbers in a range in Excel
  • How to use Excel OFFSET function
  • VLOOKUP function: Description, Usage, Syntax, Examples and Explanation
  • How to get last column number in range in Excel

Data Analysis Examples

  • Add Outline to Data in Excel
  • How to Create Column Chart in Excel
  • How to calculate correlation coefficient Correlation in Excel
  • How to create running total in an Excel Table
  • Example of COUNTIFS with variable table column in Excel

Data Validation Examples

  • Excel Data validation only dates between
  • Excel Data validation exists in list
  • Excel Data validation allow uppercase only
  • Excel Data validation date in next 30 days
  • Prevent invalid data entering in specific cells

How to calculate annual compound interest schedule in Excel

by

To calculate annual compound interest, you can use a formula based on the starting balance and annual interest rate.

Formula

=start+(start*rate)

Explanation

In the example shown, the formula in C6 is:

=C5+(C5*rate)

Note: “rate” is the named range F6.

Worked Example:   FV function: Description, Usage, Syntax, Examples and Explanation

How this formula works

If you have an annual interest rate, and a starting balance you can calculate interest  with:

=balance * rate

and the ending balance with:

=balance+(balance*rate)

So, for each period in the example, we use this formula copied down the table:

=C5+(C5*rate)

With the FV function

The FV function can also be used to calculate future value. The equivalent formula is:

=FV(rate,1,0,-C5)

The interest rate is used as-is, since we are compounding annually, nper is 1, since there is only one period per year, pmt is zero, since there are no additional payments, and pv is the starting balance, input as a negative value by convention.

Worked Example:   PMT, RATE, NPER, PV and FV Financial Functions in Excel
Worked Example:   FV function: Description, Usage, Syntax, Examples and Explanation

Post navigation

Previous Post:

How to calculate annuity for interest rate in excel

Next Post:

How to translate letters to numbers in Excel

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Learn Basic Excel

Ribbon
Workbook
Worksheets
Format Cells
Find & Select
Sort & Filter
Templates
Print
Share
Protect
Keyboard Shortcuts

Categories

  • Charts
  • Data Analysis
  • Data Validation
  • Excel Functions
    • Cube Functions
    • Database Functions
    • Date and Time Functions
    • Engineering Functions
    • Financial Functions
    • Information Functions
    • Logical Functions
    • Lookup and Reference Functions
    • Math and Trig Functions
    • Statistical Functions
    • Text Functions
    • Web Functions
  • Excel VBA
  • Excel Video Tutorials
  • Formatting
  • Grouping
  • Others
  • How to strip numeric characters from cell in Excel
  • Remove file extension from filename in Excel
  • Replace one character with another in Excel
  • SEARCH, SEARCHB functions: Description, Usage, Syntax, Examples and Explanation
  • PROPER function: Description, Usage, Syntax, Examples and Explanation
  • Count day of week between dates in Excel
  • Get days, months, and years between dates in Excel
  • How to calculate future date say 6 months ahead in Excel
  • How to get year from date in Excel
  • EOMONTH function: Description, Usage, Syntax, Examples and Explanation
  • NPER function: Description, Usage, Syntax, Examples and Explanation
  • TBILLPRICE function: Description, Usage, Syntax, Examples and Explanation
  • VDB function: Description, Usage, Syntax, Examples and Explanation
  • Calculate original loan amount in Excel
  • PDURATION function: Description, Usage, Syntax, Examples and Explanation
Acronyms, Abbreviations, Initialism & What They Stand For
© 2022 xlsoffice . All Right Reserved. | Teal Smiles