Monthly Compound Interest Formula Excel Template

If you need to calculate the future value of an interest when compounding frequency is quarterly you can simply change the value in cell b6 to 4.

Monthly compound interest formula excel template. Compound interest calculator excel template. Note these formulas assume that the deposits payments are made at the end of each compound period. Assume you put 100 into a bank. Here we discuss how to calculate monthly compound interest using its formula along with examples and downloadable excel template. You may also look at the following articles to learn more.

What s compound interest and what s the formula for compound interest in excel. This is a guide to monthly compound interest formula. The answer is 108. Year 3 would see a monthly deposit of 106 09. Wrapping things up understanding the base formula of compound interest is the key in knowing how to compute for the daily monthly quarterly or semi annual compound interest easily.

How much will your investment be worth after 1 year at an annual interest rate of 8. To simplify the process we have created a simple and easy compound interest calculator excel template with predefined formulas. Year 2 would see a monthly deposit of 103 00. Calculation using excel s fv formula. We also provide a monthly compound interest calculator with a downloadable excel template.

Here we discuss how to calculate monthly compound interest formula along with practical examples. This example gives you the answers to these questions. Additionally the template also provides a schedule of payments and. Computing the compound interest of an initial investment is easy for a fixed number of. This formula returns the result 122 0996594.

However if you re looking for a more advanced template vertex42 s compound interest calculator for excel is also great. This has been a guide to monthly compound interest formula. However in this example the interest is paid monthly. Year 4 would see. This is how your monthly investment calculator excel will look like.

Principal amount 1 annual interest rate 12 total years of investment 12 in above example with 10000 of principal amount and 10 interest for 5 years we will get 16453. According to figure 1 this means that type 0 the default for the fv function if i wanted to deposit 1000 at the beginning of each year for 5 years the fv function in excel allows me to calculate the result as fv 4 5 1000 1 where type 1 just remember that the type argument has to do. Just enter a few data and the template will calculate the compound interest for a particular investment. You can learn more about excel modeling from the following articles interest on loan. In line with kailua s request above i am seeking an excel formula for compounding interest with a starting monthly deposit of 100 invested at 7 per year compounded annually and increasing the monthly deposit by 3 per year i e.