# Compounding Interest

#### tlc53

##### Active Member
Hi there,

I can see myself spending (more) hours on this so before I do, I thought I'd check if there's any clever cookies who know how to do this.

I would like to calculate the compounding interest on a Overdrawn Loan account.

I would like the interest incurred to be shown quarterly.

In each quarter, it is possible to change the interest rate and it is possible for the quarterly dates to change (depending on the balance date).

I have created a section where all Additions to the Loan/Debits can be entered (Date & Amount). For each addition, I would like it to show me what the compounding interest amount is, split over the four quarters.

So far, I have worked a formula for each addition which tells me the amount of days in the quarter it is subject to interest and from this, the amount of interest incurred for each quarter, at that quarters interest rate. However, and this is where my problem lies, it is just calculating basic interest and not compounding.

Well and truly stuck on this!

Here is an example of the formula I have for calculating the 1st quarter interest of an addition;

=(C25*\$E\$17)/\$D\$21*V25

C25 Loan Addition Amount * E17 Quarterly Interest Rate / D21 Total 365 days in all quarters * V25 days addition active in 1st quarter

I then have similar formulas to work out Quarter 2, 3 and 4 interest.

Can someone please tell me how I go about making this compounding interest?

Thank you!

### Excel Facts

Format cells as date
Select range and press Ctrl+Shift+3 to format cells as date. (Shift 3 is the # sign which sort of looks like a small calendar).

Resolved

Replies
1
Views
265
Replies
2
Views
177
Replies
0
Views
206
Replies
0
Views
361
Replies
3
Views
177

1,136,314
Messages
5,675,018
Members
419,543
Latest member
Casp

### We've detected that you are using an adblocker.

We have a great community of people providing Excel help here, but the hosting costs are enormous. You can help keep this site running by allowing ads on MrExcel.com.

### Which adblocker are you using?

1)Click on the icon in the browser’s toolbar.
2)Click on the icon in the browser’s toolbar.
2)Click on the "Pause on this site" option.
Go back

1)Click on the icon in the browser’s toolbar.
2)Click on the toggle to disable it for "mrexcel.com".
Go back

### Disable uBlock Origin

Follow these easy steps to disable uBlock Origin

1)Click on the icon in the browser’s toolbar.
2)Click on the "Power" button.
3)Click on the "Refresh" button.
Go back

### Disable uBlock

Follow these easy steps to disable uBlock

1)Click on the icon in the browser’s toolbar.
2)Click on the "Power" button.
3)Click on the "Refresh" button.
Go back