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mirifique's avatar

Where to find Excel template to calculate interest compounded monthly?

Asked by mirifique (1514points) March 22nd, 2010

Cannot seem to find this anywhere, and do not have time to create an Excel macro. Thanks in advance.

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7 Answers

njnyjobs's avatar

do you have a fixed monthly interst rate? . . . are there any principal additions or subtractions involve?

mirifique's avatar

Fixed monthly interest rate of 1.0%.

mirifique's avatar

I could probably use one of the many calculators/templates available online, but I cannot for the life of me figure out how to convert 1.0% monthly interest to an annual interest rate…

aprilsimnel's avatar

Microsoft has this solution. Otherwise, go here and click on the sentence that says “If algebra isn’t your cup of tea, use our template here. Fill in the yellow cells to see the final amount.” There’s a link to an Excel spreadsheet with the formula.

jaytkay's avatar

XL: How to Calculate Compound Interest

Suppose you have $1,000.00 in an investment account. The account pays 8 percent interest and this interest is compounded annually. How much will the investment be worth at the end of three years? There are two ways to find the amount:

where PV is present value, R is the interest rate, and N is the number of investment periods.

Use a Fixed Formula
The following formula typed into a cell on a worksheet, returns the correct value of $1,259.71:
However, all of the information is ‘hard-coded’ into the formula and you must manually change the formula any time the figures change.

Create a Function Macro to Determine Compound Interest
Function Yearly_Rate(PV As Double, R As Double, N As Double) As Double
Yearly_Rate = PV*(1+R)^N ‘Performs computation
End Function

njnyjobs's avatar

12 months in a year… so multiply your monthly rate by 12 to get annual rate. On the flip, if you have an annual rate and want to get monthly rate, divided the rate by 12.

njnyjobs's avatar

If youmust have a template, there’s one here:

The sample is defaulting to annual interest. You can make adjustments to the template by providing monthly interest rate instead of annual interest rate and indicate number of months instead of years for the calculation period.

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