F P 1 rate nper F - FV rate nper P F FV rate nper- P. For the formula for compound interest just algebraically rearrange the formula for CAGR. The function takes two arguments ie.
The Excel compound interest formula in cell B4 of the spreadsheet on the right uses references to the values stored in cells B1 B2 and B3 to perform the same compound interest calculation.
For principal we will provide the reference of B1 cell and for schedule we will specify 00125 as. Calculate compound interest by Function in Excel 1. The answer is 18167. This formula is applicable if the investment is getting compounded annually means that we are reinvesting the money on an annual basis.