To simplify the process, we have created a simple and easy Compound Interest Calculator Excel Template with predefined formulas. Compound Interest Calculator Excel Template Where: P = Principal Amount, i = interest rate, n = compounding periods.
Formula To Calculate Compound InterestĬompound Interest (A) = P For example, the amount of 10% compound interest compounded annually will be lower than 5% compound interest compounded semi-annually over the same time period. While calculating compound interest the compounding periods matter the most and have a significant difference. What is Compound Interest?Ĭompound interest is the method of calculating interest any given amount assuming that the interest earned each period is added to the principal. Hence, you receive not only interest on your principal amount but also the added interest each year. In addition to that, the template also provides a complete schedule of payments and interests accumulating each payment period.
