Let us see how to calculate compound interest using Excel. ... Enter the above data in Excel and write the following formula: =B1*(1+B2)^B3.

Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. Compound interest is interest that's calculated ...

$110 x .10 = $11. $110 + $11 = $121 new balance The second year's gain is $11 instead of $10 because the 10% rate was applied to a larger account balance. The 10% interest applied to $100 created ...