Calculate compound interest with Excel - that's the formula

You can use the compound interest formula in Excel to calculate the financial impact of a loan or the return on an investment. We'll show you how it's done.

First steps: Formula for compound interest and entry of values

To implement the mathematical formula of compound interest Ke = Ka (1 + p / 100) ^ n in Excel, you have to enter the following values ​​in your Excel table as follows:

• We enter the assets invested or the starting amount "Ka" in euros in field A2.
• We enter the annual interest rate "p" in percent in field B2.
• We enter the investment period "n" in years in field C2.
• Similarly, in the case of a loan, enter the values ​​for the loan amount "Ka", the loan interest "p" and the term of the loan "n".

Apply compound interest formula in Excel

• Now enter the compound interest formula as a command in cell D2. The command is "= A2 * (1 + B2 / 100) ^ C2" without the quotation marks.
• Note: In the case of a loan, you can use the Ke - Ka invoice to calculate how much money the loan will actually cost you.

You can find more tips on calculating with Excel in the next practical tip.