Quick, clean, and to the point

Annual compound interest schedule

Excel formula: Annual compound interest schedule
Generic formula 

To calculate annual compound interest, you can use a formula based on the starting balance and annual interest rate. In the example shown, the formula in C6 is:


Note: "rate" is the named range F6.


If you have an annual interest rate, and a starting balance you can calculate interest with:

=balance * rate

and the ending balance with:


So, for each period in the example, we use this formula copied down the table:


With the FV function

The FV function can also be used to calculate future value. The equivalent formula is:


The interest rate is used as-is, since we are compounding annually, nper is 1, since there is only one period per year, pmt is zero, since there are no additional payments, and pv is the starting balance, input as a negative value by convention.

Dave Bruns

Excel Formula Training

Formulas are the key to getting things done in Excel. In this accelerated training, you'll learn how to use formulas to manipulate text, work with dates and times, lookup values with VLOOKUP and INDEX & MATCH, count and sum with criteria, dynamically rank values, and create dynamic ranges. You'll also learn how to troubleshoot, trace errors, and fix problems. Instant access. See details here.

Download 200+ Excel Shortcuts

Get over 200 Excel shortcuts for Windows and Mac in one handy PDF.

Excel foundational video course
Excel Pivot Table video training course
Excel formulas and functions video training course
Excel Charts video training course
Video training for Excel Tables
Dynamic Array Formulas