How to calculate daily compound interest - Page 2
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# Thread: How to calculate daily compound interest

1. ## Re: How to calculate daily compound interest

Originally Posted by wmlbrn
Thank you - that is exactly what i needed
wouldn't let me edit the previous one but here is the formula i used.

=A1*(1+B2)^182

A1 is the principal
b2 is the interest amount - that way i can play with it and see what differences a small amount makes over a 10 year period. Thanks a bunch

2. ## Re: How to calculate daily compound interest

If you want to use a function, check help for FV.

=FV(0.0075,182,,-10000)

This should give the same result as the strictly math calculation.

3. ## Re: How to calculate daily compound interest

Hi Guys....this is what I figured it out:

Daily Interest Compound formula: Amount*(((1+(Interest rate/number of days in a year))^number of days in a month)-1)

For ex:

 Non Leap Year - 2013 Principal Amt Due: \$700,000 Annual Interest rate: 0.069959 6.9959 Number of days in a Year: 365 Interest Calculation period: Jan-2013 Daily Compound formula: Amount*(((1+(Interest rate/number of days in a year))^number of days in a month)-1) \$700,000*(((1+(0.069959/365))^31)-1) Date Principal Amt Intrerest rate Daily Interest Occumulated Interest 2013-01-31 \$700,000.00 0.069959 \$4,171.19 \$4,171.19 2013-02-28 \$704,171.19 0.069959 \$3,788.88 \$7,960.07 2013-03-31 \$707,960.07 0.069959 \$4,218.62 \$12,178.69 \$12,178.69

 Leap Year - 2012 Principal Amt Due: \$700,000 Annual Interest rate: 0.068896 6.8896 Number of days in a Year: 366 Interest Calculation period: Oct-2012 Daily Compound formula: Amount*(((1+(Interest rate/number of days in a year))^number of days in a month)-1) \$700,000*(((1+(0.068896/366))^31)-1) Date Principal Amt Intrerest rate Daily Interest Occumulated Interest 2012-10-31 \$700,000.00 0.068896 \$4,096.37 \$4,096.37 2012-11-30 \$704,096.37 0.068896 \$3,987.05 \$8,083.43 2012-12-31 \$708,083.43 0.068896 \$4,143.68 \$12,227.10 \$12,227.10

4. ## Re: How to calculate daily compound interest

Is there a way to be able to change the daily interest rate for each day if the daily rate of interest was different for the principal amount for each day individually?

5. ## Re: How to calculate daily compound interest

Originally Posted by BigDaddyKane
Is there a way to be able to change the daily interest rate for each day if the daily rate of interest was different for the principal amount for each day individually?
Yes. But the devil is in the details, which you provide none of.

Provide a concrete example with numbers, terms of deposit (e.g. compounding frequency), and expected spreadsheet design (layout), if any.

WTTW.... Start a new thread with those details. Do not piggyback an old thread, much less one that is nearly 5 years old.

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