To calculate the monthly compound interest in Excel you can use below formula. Amount 1. Rate is divided by 12 as we are calculating interest for the monthly period-B1.
Beginning Value x 1 interest rate number of compounding periods per year years x number of compounding periods per year Future Value.
The general formula for compound interest is. Pmt fixed amount which needs to be paid monthly or yearly pv Present value of borrowed or invested amount Optional type Use 1 if the EMI is paid at the start of the month 0 if the EMI is paid at the end of the month. Supposing there is 1000 initial principal in your account and the interest rate is 8 per year and you want to calculate the total interest in ten years later. For daily compounding the interest rate will be divided by 365 and n will be multiplied by 365 assuming 365 days in a year.