Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. Compound interest is interest that's calculated ...

Compound Interest Formula Excel. You can calculate compound interest in Microsoft Excel using the Future Value (FV) financial function: =FV(rate,nper,pmt,[pv],[type]) FV = future value; ...

An Excel spreadsheet can take care of this work for you, provided you set up the formula accurately. What Is Compound Interest? Let's make sure we're clear on terminology.

Apart from calculating the compound interest on paper, if you know how to calculate it in Excel, it will be an added advantage to your professionalism.In the above formula, P stands for the ...

Suppose you invest $5,000 at an annual interest rate of 5%, compounded monthly over 10 years. Here’s how you’d set up the formula: Rate: 5% divided by 12 (months in a year), giving you the ...

It can go much more quickly if you set up and Excel spreadsheet to do the number-crunching for you. Another way is to use the compound interest formula. Here it is: A = P (1 + r/n) ^ n*t.

Compound interest is interest that's calculated both on the initial principal of a deposit or loan, and on all accumulated interest. Compound interest is a tremendous advantage for savers and ...