Question

how to calculate compound interest in excel

Answer 1

For calculating yearly compound interest, you just have to add interest of the one year into next year’s principal amount to calculate the interest of the next year.

And, the formula in excel for yearly compound interest will be.

=Principal Amount*((1+Annual Interest Rate/1)^(Total Years of Investment*1)))

Answer 2

Calculate compound interest. To calculate compound interest in Excel, you can use the FV function. This example assumes that $1000 is invested for 10 years at an annual interest rate of 5%, compounded monthly.