Find out about compound interest and how to use the compounding interest formula in Microsoft Excel to calculate the compound interest on a loan.

We show you how to calculate compound interest in Excel at different rate of interests, like semi-annually, quarterly, monthly, etc.

Compound interest refers to interest calculated on interest balances as well as principal. Learn how to calculate compound interest using Microsoft Excel.

Formula for Compound Interest The compound interest formula is similar to the Compounded Annual Growth Rate (CAGR). For CAGR, you are computing a rate that links the return over a number of periods.

Compound Interest Formula Excel You can calculate compound interest in Microsoft Excel using the Future Value (FV) financial function: =FV (rate,nper,pmt, [pv], [type]) ...

Calculating CAGR or Compound Annual Growth Rate in Microsoft Excel is super easy. You will have to use the RRI function to get the job done.