# Annual compound interest schedule

=start+(start*rate)

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:

=C5+(C5*rate)

Note: "rate" is the named range F6.

### How this formula works

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

=balance * rate

and the ending balance with:

=balance+(balance*rate)

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

=C5+(C5*rate)

### With the FV function

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

=FV(rate,1,0,-C5)

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.

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