To find out how much interest you actually earned with annual compound interest enter the formula B5-B1 Balance after 1 year - Initial deposit in cell C5. You need the beginning value interest rate and number of periods in years. Examine LF-Compound Daily 360 and LF-Compound 365 for true daily compounding interest calculations.
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.
Per - the period we want to work with. FVC6 C8 C7 C80 - C5. A3 datevalue a2-datevalue a1365. Click Calc Interest and future value are calculated FV is starting amount plus the interest Depositors should use the Annual Percentage Yield APY calculation for comparing deposit accounts.