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24 votes

How do I calculate monthly compound interest in Google Sheets?

You just use the compound interest formula: Principle * (1 + Rate / Time) ^ Time For Cell C2 you want this formula: =B2*(((1+(D$1/360))^(C$1-$A2))-1) Column A is deposit date Column B is deposit ...
quid's user avatar
  • 49k
17 votes

Do bank use the same math formula to calculate the mortgage amortization table?

Banks don't necessarily use the same formula, but in most countries they must disclose the effective interest you'd be paying (which may vary from the nominal interest due to extra charges and ...
littleadv's user avatar
  • 176k
13 votes

How do I calculate monthly compound interest in Google Sheets?

The "Future Value" function does this. =FV(rate, number_of_periods, payment_amount, present_value, [end_or_beginning]) For example: =FV(2%, 12, -100, -400, 0) Note that the payment_amount and ...
Darrell's user avatar
  • 131
7 votes

Help me understand and calculate credit union interest in Google Sheets

0.250% of what? Because $100 x 0.25% = $25. How am I getting $0.02 a month? You're confusing "25%" (twenty-five percent) with "0.25%" (one quarter of one percent). Your credit union is making ...
Tom W's user avatar
  • 171
6 votes

Do bank use the same math formula to calculate the mortgage amortization table?

The mathematics on which the usual formula is based is that the sum of the payments d, each discounted to present value (PV) by 1/(1 + r)^k, should equal the initial (present value) value of the loan ...
Chris Degnen's user avatar
  • 9,837
5 votes

Clarify Microsoft's explanation of MIRR

The MIRR formula uses the finance rate to discount negative cash flows, but since the only negative cash flow in the example in in the current period, there's nothing to discount. It's meant to solve ...
D Stanley's user avatar
  • 136k
5 votes

Get Revenue Details in Google Sheets using Google Finance

Use this formula in Google Sheets: =IMPORTXML("https://www.google.com/finance/quote/TSLA:NASDAQ","//table//tr[contains(@class,'roXhBd')]") This will bring up a list of the company'...
user107993's user avatar
5 votes
Accepted

Am I calculating the future payment on my ARM correctly?

I believe that you are confusing a pair of numbers. in your first formula: -FV(0.0199/12, 19, 430, -145000, 0) = -$141,344 You decided to input $430 because that is the amount of your current ...
mhoran_psprep's user avatar
4 votes
Accepted

Excel calculating interest rate on loan

The solution uses the PMT function which has the syntax: PMT(rate, nper, pv, [fv], [type]) where Fv is Optional: The future value, or a cash balance you want to attain after the last payment is ...
Chris Degnen's user avatar
  • 9,837
3 votes
Accepted

Monthly Compound Interest calculation

Your formula gives you daily compounding, assuming the annual interest rate was calculated on 360 days (a slightly shorter ‘year’ than a natural year, but not unheard of in the finance industry). If ...
Lawrence's user avatar
  • 9,362
3 votes
Accepted

How to adjust for long term inflation in an investment plan

(1+return)/(1+inflation)-1 would be more accurate (it discounts each year's return by the level of inflation), but your formula is often used as an easy estimate for small levels of inflation: (1.11 /...
D Stanley's user avatar
  • 136k
3 votes
Accepted

Building Marcus Savings Calculator in Excel

The 2.25% is an annual effective rate (same as APY) e = 0.0225 Converting the annual effective rate to a monthly rate r = (1 + e)^(1/12) - 1 = 0.00185594 Compounding the principal, with n = 24 ...
Chris Degnen's user avatar
  • 9,837
3 votes

How do I calculate portfolio standard deviation in Excel?

To calculate the variance of a portfolio you also need the weights of each asset (ω(i)), and the correlation (or covariance) between each asset (ρ(ij) or COV(ij)). From there, the formula is: σ²(p) =...
D Stanley's user avatar
  • 136k
3 votes
Accepted

How to calculate the number of months until a loan is paid off (given principal, APR and payment amount)?

The formula for determining the number of payments (months) you'll need to make on your loan is: where i=monthly interest rate (annual rate / 12), A=loan amount (principal), and P=monthly payment. To ...
Ben Miller's user avatar
  • 116k
3 votes
Accepted

XIRR not working for this dataset. Any other method to calculate rate of return?

This is the internal rate of return (IRR) calculation for the second case. There are 731 days from 2016-02-16 to 2018-02-16. f2 = -13660 - 20000/(1 + r) - 19900/(1 + r)^(700/731) - 19880/(1 + r)^(...
Chris Degnen's user avatar
  • 9,837
3 votes
Accepted

Is the S&P500's excess return above Treasuries after investing monthly for forty years really 3.6% annualized?

Self-answer—how awfully embarrassing, I had a bug in how I was handling dividends, in both the Google Sheets spreadsheet and in the webapp, in JavaScript. (I was basically not reinvesting dividends…)...
Ahmed Fasih's user avatar
3 votes
Accepted

Mortgage/annuity spreadsheet formula question

Now I try to cumulate the interest (for 1 month) with following formula: CUMIPMT(annualRate/12, loanYears*12, loanReceived, 1, 2, 0) - I receive 237 That formula is calculating the first two months. ...
mhoran_psprep's user avatar
3 votes
Accepted

Mismatch Between FV Function and the Bankrate Simple Savings Calculator

APR is an annualized rate, meaning the yield if the periodic interest is compounded for an entire year. To convert it to a monthly rate, use a slightly different formula; r = (APY+1)^(1/12) - 1 That ...
D Stanley's user avatar
  • 136k
3 votes
Accepted

How can I track *complex* forex trades so I have an idea of my profit vs loss over time?

The solution to tracking trade history with different quantities is to use lots. Say your first order was to buy 100 EUR (paid with some amount of USD). For accounting purposes, we can place that buy ...
Michael Altfield's user avatar
2 votes

Is this how you do Currency Conversion in excel?

Your conversion is correct. Using excel doing the same conversion multiple times should be quite simple.
homer150mw's user avatar
  • 1,189
2 votes

Annual compounding with monthly payments

This calculation arrives at the correct answer. However, it uses the formula for an annuity due. This means the payments are made at the beginning of the month and the last month of the 10 year ...
Chris Degnen's user avatar
  • 9,837
2 votes
Accepted

Determining the interest rate necessary to retain a certain balance after sixty monthly withdrawals

You need to solve the money-weighted return equation. It cannot be expressed as a formula for the interest, but it can be solved numerically as shown here. Using the OP's figures, with monthly ...
Chris Degnen's user avatar
  • 9,837
2 votes

How do I convert a 4% per annum interest rate, compounded semi-annually, to a monthly rate?

For this type of problem, it is often easier to convert from one rate to another through a third standard interest rate. One good candidate for this intermediate rate is what, here in Canada, is ...
DJohnM's user avatar
  • 4,294
2 votes
Accepted

Compare my variable portfolio performance with S&P 500?

To compare your performance with the S&P 500, I think you have to work out what you would have got at the end of the year if you had simply invested everything in the S&P 500 at the time you ...
TripeHound's user avatar
  • 9,171
2 votes
Accepted

IRR Calculation with multiple investments

IRR should work fine since you use the same time period for the cash flows - just use the total amount for each "year" as your cash flows. MIRR takes into account the interest rate at which you can ...
D Stanley's user avatar
  • 136k
2 votes
Accepted

How can I calculate the annualised growth rate for an irregular investment?

Recapping your method with a simple example initialvalue = 1000 m1start = 100 m2start = 100 m3start = 100 v3end = 1500 =RATE(3,-100,-1000,1500,1) 0.0528704 The calculated rate is 5.29% per period. ...
Chris Degnen's user avatar
  • 9,837
2 votes

Compound daily interest with monthly deposits over x amount of years in excel

The future value function in Excel is detailed here: https://exceljet.net/excel-functions/excel-fv-function Assuming the nominal interest rate is 2% per annum compounded monthly. Future value after ...
Chris Degnen's user avatar
  • 9,837
2 votes

Daily Interest Monthly Compounding Multiyear

Here is a short explanation and example of daily interest and monthly compounding that will hopefully be helpful to you. Suppose a bank's interest rate is 5% nominal compounded monthly. The measure "...
Chris Degnen's user avatar
  • 9,837
2 votes
Accepted

What's wrong with the XIRR calculation here?

You don't have a large enough positive transaction to balance the negative ones. For example deposits recorded as negative cash flows should be balanced against a positive balance (or positive ...
Chris Degnen's user avatar
  • 9,837
2 votes

Do bank use the same math formula to calculate the mortgage amortization table?

I had a mortgage in the UK starting in 1990 which did not follow the standard formula. 12 months' interest on the outstanding balance was debited to the account at the anniversary date and I had to ...
grahamj42's user avatar
  • 351

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