The basic Excel formula for compound interest is this. Useful for beginners as well as advanced learners. For the formula for compound interest just algebraically rearrange the formula for CAGR.
To do this click cell B4 and then type the following formula into the formula fx bar at the top of the sheet and then press Enter or Return.
The function takes two arguments ie. In our example the formula is A2 1B2 where A2 is your initial deposit and B2 is the annual interest rate. Example 3 Compound Interest Using FVSCHEDULE Excel Formula Step 1. 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.