monthly compound interest formula

[Kalpesh123]

Hello


i want calculate monthly compounding interest

like if start date not month 1st day or end not last day then how to calculate

like annual interest rate is 14%
start day is May 12,2021 and end day is Sep 08,2021
when month end interest charges added like may 31,june 30,july 31,aug 31,sep30

how to calculate in excel

 

[Anthony47]

Given an annual yield, for example 1.14 ie +14%, first calculate the montly yield using 1.14^(1/12)
Then calculate entire months between Start date and End date, then the additional days; DATEDIF can provide these 2 values; transform the days in fraction of a conventional (30 days long) month and apply the monthly yield.
See an example on the attached image; formulas set in column B are shown in red in column C

Bye
PS: probably in Wall Street they use a different approach