How to calculate daily compound interest

wmlbrn

New Member
Joined
Apr 10, 2008
Messages
8
I am trying to set up my excel to calculate daily compound interest.

The amount is 10,000 at 0.75% per day for 6 months.

I have tried several different things with no success - help please :)
 
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 :)
 
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Excel Facts

How to total the visible cells?
From the first blank cell below a filtered data set, press Alt+=. Instead of SUM, you will get SUBTOTAL(9,)
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.
 
Upvote 0
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)</SPAN></SPAN>

For ex:

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

<TBODY>
</TBODY><COLGROUP><COL span=2><COL><COL><COL><COL></COLGROUP>

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



<TBODY>
</TBODY><COLGROUP><COL span=2><COL><COL><COL><COL></COLGROUP>
 
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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?
 
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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.
 
Upvote 0
I am trying to set up my excel to calculate daily compound interest.

The amount is 10,000 at 0.75% per day for 6 months.

I have tried several different things with no success - help please :)
=FV(Int. Rate, Nper, 0, -P). In your case, 0.75% means 075%/365 days, Nper means 0.5 Years, i.e. 6 months, and P is 10000. Final sum is nearly 10000.10 because interest earn per day is approx. Rs. 0.00056296. Interest for 180 days is so Rs.0.10.
 
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