FV function in Excel

Excel Financial Functions perform many of the common financial calculations, such as the calculation of yield, interest rates, duration, valuation and depreciation.

How to calculate annual compound interest schedule in Excel

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. How this formula works If you have an annual interest rate, and a starting balance you… read more »

How to calculate compound interest in Excel

To calculate compound interest in Excel, you can use the FV function. Case study: This example assumes that $1000 is invested for 10 years at an annual interest rate of 5%, compounded monthly. Formula =FV(rate,nper,pmt,pv) Explanation In the example shown, the formula in C10 is: =FV(C6/C8,C7*C8,0,-C5) How this formula works The FV function can calculate compound… read more »

PMT, RATE, NPER, PV and FV Financial Functions in Excel

Learn all about Excel’s PMT, RATE, NPER, PV and FV To illustrate Excel’s most popular financial functions, we consider a loan with monthly payments, an annual interest rate of 6%, a 20-year duration, a present value of $150,000 (amount borrowed) and a future value of 0 (that’s what you hope to achieve when you pay off a loan). We make monthly payments,… read more »