Google Sheets does not have a native formula specifically for calculating compound interest. However, you can easily create the calculation using standard mathematical functions. To calculate compound interest in Google Sheets, follow these steps:
In cell A2, enter the principal amount (e.g., $1000).
In cell B2, enter the annual interest rate (as a decimal, so for 5%, enter 0.05).
In cell C2, enter the number of times the interest is compounded per year (e.g., 12 for monthly).
In cell D2, enter the number of years for the investment (e.g., 5 years).
Below is an example:
In cell E1, enter the following formula for compound interest:
=A2*(1+B2/C2)^(C2*D2)
This formula represents the compound interest formula A(1 + r/n)^(nt), where A is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.
After entering the formula, press Enter. The cell E1 will display the final amount after interest.
You can change the values in cells A2, B2, C2, and D2 to see how different rates, times, and durations affect the compound interest.
We hope that this article has helped you and given you a better understanding of how to calculate compound interest in Google Sheets. If you enjoyed this article, you might also like our articles on how to clear all filters in Google Sheets and how to insert a check mark in Google Sheets.
