In this article, we will look at various operations with interest. Satisfied simple task, but for beginners it will be very useful. In addition, Excel allows you to find percentages, add, remove, and so on much more convenient than with a calculator, and allows you to work immediately with big amount data. In this article, you will learn how to find percentages of a number or amount, as well as how many percentages a number is from another amount.

A task. There is data on sales of employees, it is necessary to calculate the bonus, which in currently is 5% of sales. That is, we need to find 5% of the number (employee sales).

For convenience, we will place the 5% premium in a separate table so that by changing this percentage, the data changes automatically. To understand how to calculate the percentage of a number, we can make a proportion.

We solve the proportion by multiplying the values ​​diagonally from x and dividing by the opposite number diagonally from x. The formula for calculating the amount (percentage of a number) will look like this:

So, to find 5 percent of the amount of sales, write the formula in cell C2

We have described in detail the principle of calculating the percentage of the amount, the algorithm of actions. In general, to calculate a percentage of a number, you can simply multiply that number by the percentage divided by 100.

That is, in our case, the formula for finding 5% of the amount could be as follows:

Very short and fast. If you need to find 15%, then multiply the number by 0.15 and so on.

This is the reverse task. We have a number and we need to calculate how much the number is as a percentage of the principal amount.

A task. We have a table with data on sales and returns by employee. We need to calculate the percentage of return, that is, how many percent is the return on the total amount of sales.

Let's make a proportion. 35682 rubles is Petrov's entire revenue, that is, 100% of the money. 2023 rubles is a return - x% of the amount of sales

We solve the proportion by multiplying the values ​​diagonally from x and dividing by the opposite number diagonally from x:

x=2023*100%/3568

Let's write this formula into cell D2 and drag the formula down.

For the cells of the received results, you need to apply the format "Percentage", since x is calculated as a percentage. To do this, select the cells, right-click on any of the selected cells and select "Format", then select the tab "Number", "Percentage". This format will automatically multiply the number by 100 and add a percent sign, which is what we need. You do not need to write the percent sign yourself - use the format specially designed for this.

As a result, we will get the following result. Find how much is the number (return) of the amount (sales) as a percentage.

In this case, you can also make everything shorter. The principle is as follows, if the task is to find "What percentage is the number of...". This number is then divided by the total amount and the percentage format is applied.

How to find 100% of a known value as a percentage

Let's say we have data on returns in rubles and percentages of sales. Knowing this data, we need to find the amount of sales for each employee, that is, 100%.

In the process of solving various kinds of tasks, both educational and practical, users often turn to Excel.

Spreadsheets allow you to analyze data, build charts and graphs, and perform a variety of calculations. One common operation is the calculation of percentages. The ability to competently make the necessary calculations is a useful skill that finds successful application in almost all areas of life. What techniques will help you calculate percentages using Excel spreadsheets?

How to calculate percentages in Excel - the basic calculation formula

Before proceeding with the calculation of percentages, it is necessary to define the terminology. The term "percentage" means the number of shares out of all 100 shares of the whole. The mathematical definition of a percentage is a fraction, the numerator of which determines the desired number of parts, and the denominator is the total. The result is multiplied by 100 (because the integer is 100%). Working with a spreadsheet, the formula for determining the percentage is as follows:

Part/Whole = Percentage

It differs from the usual interpretation in mathematics only by the absence of further multiplication by 100. The properties of the table fields will help you get the necessary value format - just activate the Percent cell format.

Example 1

Here is a series of data entered, for example, in column D (D2, D3, D4, D5, ...). It is necessary to calculate, 5% of each value.

  • Activate the cell next to the first value (or any other) - it will contain the result of the calculations.
  • In cell E2, write the expression "=D2/100*5" or "=D2*5%".
  • Press Enter.
  • "Drag" cell E2 to the required number of lines. Thanks to the autocomplete token, the above formula will also calculate the rest of the values.

Example 2

You have 2 columns of values ​​in front of you - for example, sold cakes (D2, D3, D4, D5, ...) and the total number of baked goods (E2, E3, E4, E5, ...) of each type. It is necessary to determine what part of the product is sold.

  • In the cell where the result will be calculated (for example, F), write the expression "=D2/E2".
  • Press Enter and "stretch" the cell for the required number of lines. Using the autofill marker will allow you to apply this formula to all subsequent cells and make the correct calculations.
  • To convert the result to percentage format, select the required cells and use the Percent Style command. To activate the latter, you can right-click and select the "Format cells" - "Percentage" item in the list that appears. In doing so, you specify the desired number of decimal places. Or go to the "Home" - "Number" section and select the "Percentage" view.


How to calculate percentages in Excel - percentage of the amount

To calculate the proportion of each part relative to the total, use the expression "=A2/$A$10", where A2 is the value of interest, the total is indicated in cell A10. What if the position you are interested in appears in the table several times? In this case, use the SUMIF (SUMIF) function with the following parameters:

SUMIF(range,criteria,sum_range)/total

SUMIF(range, criterion, sum_range)/total sum

  • Move to the cell where the result will be obtained.
  • Write the expression "=SUMIF(C2:C10;F1;D2:D10)/$D$14" (or =SUMIF (C2:C10;F1;D2:D10)/$D$14), where

C2:C10, D2:D10 - ranges of values ​​within which calculations occur,

F1 - a cell in which the studied characteristic is indicated,

D14 is the cell in which the amount is calculated.


How to Calculate Percentages in Excel - Percent Change

The need for such calculations often arises in the course of assessing the increase or decrease in performance. So, sales volumes by product categories for 2015. entered in column D, similar data for 2016. - in column E. It is necessary to determine by what percentage the volume of sales increased or decreased.

  • In cell F2, enter the formula "=(E2-D2)/D2".
  • Convert cell data to Percentage format.
  • To calculate gain or loss for other categories (cells), drag F2 to required amount lines.
  • Evaluate the result. If the value is positive, you have an increase; if negative, you have a decrease.


Hi all! Do you know how to calculate percentages in Excel? In fact, interest in life accompanies us very often. After today's lesson, you will be able to calculate the profitability of an idea that has suddenly arisen, find out how much you actually get by participating in store promotions. Master some points and be with percentages on "You".

I'll show you how to use the basic calculation formula, calculate percentage growth, and other tricks.

Such a definition as a percentage is familiar to everyone from the school bench. It comes from Latin and literally means “out of a hundred”. There is a formula that calculates percentages:

Consider an example: there are 20 apples, 5 of which you treated your friends. Determine in percentage, what part did you give away? Thanks to simple calculations we get the result:

In this way, interest is calculated both on the school bench and in ordinary life. Thanks to Excel, such calculations become even easier, because everything happens automatically. There is no single formula for calculations. The choice of calculation method will depend on the desired result.

How to calculate percentages in Excel: the basic calculation formula

There is a basic formula that looks like:
Unlike school calculations, this formula does not need to be multiplied by 100. Excel takes care of this moment, provided that the cells are assigned a certain percentage format.

Let's consider a specific situation. There are products that are in the order stage, and there are goods that have been delivered. The order in column B, named Ordered. Delivered products are listed in column C named Delivered. It is necessary to determine the percentage of the delivered fruit:

  • In cell D2, write the formula =C2/B2. Decide how many lines you need and use autocomplete to copy it.
  • In the "Home" tab, find the "Number" command, select "Percent Style".
  • Look at the decimal places. Adjust their number if necessary.
  • Everything! Let's see the result.

The last column, D, now contains values ​​that represent delivered orders as a percentage.

How to calculate percentage of a total in excel

We will now look at some more examples of how to calculate percentage in excel of the total amount, which will allow you to better understand and assimilate the material.

1. The calculated amount is located at the bottom of the table

At the end of the table, you can often see the "Total" cell, where the total is located. We have to count each part to the final value. The formula will look like in the previously considered example, but the denominator of the fraction will contain an absolute reference. The $ sign will be in front of the row and column names.

Column B is filled with values, and cell B10 contains their total. The formula will look like:
Using a relative link in cell B2 will allow it to be copied and pasted into cells in the Ordered column.

2.Parts of the sum are located on different lines

Suppose we need to collect data that is in different rows and find out what part is occupied by orders for a particular product. Adding specific values ​​is possible using the SUMIF (SUMIF) function. The result that we get will be necessary for us to calculate the percentage of the amount.

Column A is our range, and the summation range is in column B. We enter the name of the product in cell E1. This is our main criterion. Cell B10 contains the sum of the products. The formula looks like this:


In the formula itself, you can place the name of the product:

If you need to calculate, for example, how much cherries and apples take as a percentage, then the amount for each fruit will be divided by the total. The formula looks like this:

Calculating Percentage Changes

Calculating data that changes can be expressed as a percentage and is the most common task in Excel. The formula for calculating the percentage change is as follows:

In the process of work, you need to accurately determine which of the values ​​which letter occupies. If you have more of any product today, this will be an increase, and if less, then a decrease. The following scheme works:

Now we need to figure out how we can apply it in real calculations.

1. Count the changes of two columns

Let's say we have 2 columns B and C. In the first one, we display the prices of the last month, and in the second - this month. To calculate the resulting changes, we enter a formula in column D.

The results of the calculation using this formula will show us the presence of an increase or decrease in price. Fill in the formula with all the lines you need using autocomplete. For cells with a formula, be sure to activate the percentage format. If you did everything correctly, you get such a table, where the increase is highlighted in black, and the decrease is in red.

If you are interested in changes over a certain period and the data is in one column, then we use the following formula:

We write down the formula, fill it with all the lines that we need and get the following table:

If you want to count the changes for individual cells, and compare them all with one, use the absolute reference we already know using the $ sign. We take January as the main month and calculate the changes for all months as a percentage:

Copying the formula over other cells will not change it, but a relative reference will change the numbering.

Calculating the value and the total amount from a known percentage

I clearly demonstrated to you that there is nothing complicated in calculating percentages through Excel, just like in calculating the amount and values ​​​​when the percentage is already known.
1. Calculation of the value by a known percentage

For example, you buy a new phone that costs $950. You are aware of the 11% VAT surcharge. It is required to determine the surcharge in monetary terms. This formula will help us with this:

In our case, applying the formula =A2*B2 gives the following result:

You can take as a decimal value, and using a percentage.

2. Calculation of the total amount

Consider the following example where the known starting amount is $400 and the salesperson tells you that the price is now 30% less than last year. How can I find out the original cost?

The price decreased by 30%, which means that we need to subtract this indicator from 100% to determine the required share:

The formula that determines the initial cost is:

Given our task, we get:

Converting a value to a percentage

This method of calculation is useful for those who are especially careful about their expenses and want to make some changes to them.

To increase the value by a percentage, we will use the formula:

We need to reduce the percentage. Let's use the formula:

Using the formula =A1*(1-20%) reduces the value that is contained in the cell.

Our example shows a table with columns A2 and B2, where the first is the current expenses, and the second is the percentage by which you want to change the expenses in one direction or another. Cell C2 should be filled with the formula:

Increment by percentage of values ​​in a column

If you want to make changes to the entire data column without creating new columns for this and using an existing one, you need to take 5 steps:

Now we see values ​​increased by 20%.

Using this method, you can perform various operations for a certain percentage by entering it into a free cell.

Today was a big lesson. I hope you made it clear to yourself how to calculate percentage in excel. And, despite the fact that such calculations are not very popular for many, you will do them with ease.

If you need to work with percentages, you'll be glad to know that Excel has tools to make your job easier.

You can use Excel to calculate your monthly profit and loss percentage. Whether it's cost growth or month-to-month percentage sales, you'll always be on top of your business's key metrics. Excel will help you with this.

You will also learn how to work with percentages at an advanced level, calculating the arithmetic mean as well as the percentile value, which can be useful in many cases.

Step by step, this guide will teach you how to calculate percentage in Excel. Let's take a look at some Excel percentage formulas, functions, and tips using the example of a business expense sheet and a school grade sheet.

You will gain skills that will allow you to skillfully work with percentages in Excel.

Demo

You can see complete guide in the demo above or read step by step description below. To get started, download the free source files: We'll use them throughout the exercises.

1. Data entry in Excel

Paste the following data (or open the downloaded file " persentages.xlsx", which is in the source files of this guide). It has an Expenses sheet. Later we will use the Grades sheet.

Percentage worksheet data

Calculate the percentage increase

Let's say you expect an 8% increase in spending in next year and you want to see those values.

Before you start writing formulas, it's useful to know that in Excel you can do calculations using both the percent sign (20%) and decimals (0.2 or just .2). The percent symbol for Excel is just formatting.

We want to see the final amount, not just the amount of growth.

Step 1

In a cell A18 write with 8% growth. Since this cell contains both text and a number, Excel will assume that the entire cell contains text.

Step 2

Click Tab, then in the cell B18 write the following formula: =B17 * 1.08

Or you can use the following formula: =B17 * 108%

The resulting amount will be 71.675 as shown below:

Calculating Percentage Increase in Excel

3. Calculation of percentage reduction

Maybe you think that expenses will decrease by 8%. To see the result, the formula will be similar. Start by showing the total reduced amount, not just the amount of the reduction.

Step 1

In a cell A19, write with 8% reduction.

Step 2

Click Tab, then in the cell B19 write the following formula: =B17 * .92

Or you can write the formula in another way: =B17 * 92%

The result will be 61.057.

Percentage Reduction Calculation in Excel

Step 3

If you need the ability to change the percentage of price increase or decrease, then you can write the formulas as follows:

Formula for growth by 8% in a cell B18 will be =B17 + B17 * 0.08

Step 4

Formula to reduce by 8% in a cell B19 will be = B17 - B17 * 0.08

In these formulas, you can simply change .08 to any other number to get a result with a different percentage size.

4. Calculation of the percentage

Now let's move on to the formula for calculating the percentage. What if you want to know how much these eight%? To do this, multiply the total by B17 by 8 percent.

Step 1

In a cell A20 write 8% of the total amount.

Step 2

Press key Tab, and in the cell B20 write the following formula: =B17 * 0.08

Or you can write this formula like this: =B17 * 8%

The result will be 5.309.

Calculating the Percentage in Excel

5. Making changes without editing formulas

If you want to change the percentage without editing the formulas, then you need to put it in a separate cell. Let's start with the line names.

Step 1

In cell A22 write Changes. Press key Enter.

Step 2

In cell A23 write The largest amount. Press key Enter.

Step 3

In cell A24 write The smallest amount. Press key Enter.

On the sheet it should look like this:

Excel sheet with extra rows

Now let's add percentages and formulas to the right of the headings.

Step 4

In a cell B22 write 8% . Press key Enter.

Step 5

In a cell B23 write the following formula to calculate the grand total plus 8%: =B17 + B17 * B22

Step 6

In a cell B24 write the following formula to calculate the total minus 8%: =B17 * (100% - B22)

If in a cell B22 If you write 8%, Excel will automatically format that cell as a percentage. If you write .08 or 0.08, Excel will save that cell as it is. You can always change the cell format to percent format by clicking the button on the ribbon Percent Style:

Percent Style button and its action

Tip: You can also format numbers as percentages using the keyboard shortcut Ctrl+Shift+% for Windows or Command + Shift + % for Ma c.

6. Calculation of the change in the amount of interest

The general rule for calculating interest rate change is as follows:

=(new value - old value) / new value

If January is the first month, then it has no interest rate change. The first change compared to January will be in February, and next to the February data we will write the following:

Step 1

Step 2

Excel will display the result as a fraction, so click the button Percent Style on the ribbon (or use the keyboard shortcut above) to display the number as a percentage.

Percent Style button to display as a percentage

Now that we have the percentage difference between February and January, we can automatically fill in the formula column to find out the percentage change for the remaining months.

Step 3

Hover your mouse over the dot in the lower right corner of the cell containing the -7% value.

Point to Autofill in Excel

Step 4

When the mouse pointer changes to a crosshair, do double click mouse.

If you're unfamiliar with the AutoComplete feature, read technique 3 in my Excel Techniques article:

Step 5

Select cell B3(with the heading "Amount").

Step 6

Hover mouse pointer on dot for autocomplete and drag it one cell to the right, into the cell C3. This will duplicate the title along with its formatting.

Step 7

In a cell C3 replace title with % Change.

All percentage changes are counted

7. Calculation of the percentage of the total amount

The last technique on this worksheet is to calculate the percentage of the total for each month. Think of this percentage as a pie chart with one sector each month and the sum of all sectors is 100%.

It doesn't matter if you calculate it with Excel or on paper, the following simple division operation will be used:

Single item value/total amount

which must be expressed as a percentage.

In our case, we will divide each month by the total amount that is at the bottom of column B.

Step 1

Select cell C3 and do autocomplete one cell, up to D3.

Step 2

Change the text in a cell D3 on % of the total.

Step 3

In a cell D4 write this formula, just for now do not press Enter:=B4/B17

Step 4

Before pressing the enter key, we need to make sure that there will be no errors during autocompletion. Since we will automatically fill the columns down, the divisor (now B17) should not change. After all, if it changes, then all calculations from February to December will be incorrect.

Make sure the text cursor is still in the cell before the divider "B17".

Step 5

Press key F4(on Mac - fn+ F4).

So you insert a dollar sign ($) in front of the column and row value, and the divisor will look like this: $B$17. $B means that column B will not change to column C, etc., but $17 means that line number 17 will not change to line 18 etc.

Step 6

Make sure the formula ends up looking like this: =B4/$B$17.

Formula for percentage of total

Step 7

You can now press the Enter key and autocomplete.

Click ctrl + Enter(on Mac - command+ ↩) to enter the formula without moving the mouse cursor to the cell below.

Step 8

Click the button Percent Style on the ribbon, or use the keyboard shortcut ctrl+ Shift+ % (command+ Shift+ %).

Step 9

Mouse over above dot for autocomplete in a cell D4.

Step 10

When the cursor changes to a crosshair, do double click mouse to automatically fill the cells below with formulas.

Now for each month the value of its percentage of the total will be shown.

Completed percentage of the total

8. Percentage ranking

Ranking values ​​as a percentage is a statistical method. You are probably familiar with it from school, when the average score of students is calculated, and this allows you to rank them as a percentage. The higher the score, the higher the percentage.

The list of numbers (grades, in our case) is in a group of cells, which in Excel is called an array. There is nothing special about arrays, so we won't define them. It's just that Excel calls the range of cells that you use in the formula.

There are two functions in Excel to calculate percentage ranking. One of them includes the start and end values ​​of the array, and the other does not.

Look at the second sheet tab: Grades (Grades).

Percentage Ranking in Excel - Score Sheet

Here is a list of 35 average scores sorted in ascending order. The first thing we want to know is the percentage ranking for each average score. For this we will use the =PERCENTRANK.INC function. The "INC" in this function means "including" because it will include the first and last points in the list. If you want to exclude the first and last points of an array, then use the =PERCENTRANK.EXC function.

The function has two required arguments and it looks like this: =PERCENTRANK.INC(array, entry)

  • array(array) is a group of cells that make up a list (in our case B3:B37)
  • entry(value) is any value or cell in the list

Step 1

Select the first cell in the list C3.

Step 2

Write the following formula, but do not press the Enter key:=PERCENTRANK.INC(B3:B37

Step 3

This range needs to be unchanged so that we can autofill all cells from top to bottom.

So press the key F4(on Mac - fn+ F4) to add a dollar sign to the values.

The formula should look like this: =PERCENTRANK.INC($B$3:$B$37

Step 4

In each cell in column C, we will see the percentage ranking of the corresponding value in column b.

Click on a cell B3 and close the brackets.

The final formula is: =PERCENTRANK.INC($B$3:$B$37,B3)

Percent ranking function

Now we can enter and format the values.

Step 5

If necessary, select the cell again C3.

Step 6

Complete double click mouse on autocomplete point cells C3. This will automatically fill in the cells in the column below.

Step 7

On the ribbon, click Percent Style to format the column as a percentage. As a result, you should see the following:

Filled and formatted percentage ranking function

Thus, if you have good grades and your GPA 3.98, then you are in the 94th percentile.

9. Calculation of percentile.

Using the PERCENTILE functions, you can calculate the percentile. With this function, you can enter a percentage value and get the value from the array that corresponds to that percentage. If exact value is not in the range, then Excel will show the value that "should" be in the list.

In what cases is it necessary? For example, if you are applying to a university program that only accepts students who are in the 60th percentile range. And you need to find out what average score corresponds to 60%. Looking at the list, we can see that 3.22 is 59% and 3.25 is 62%. Using the =PERCENTILE.INC function we will find out the exact answer.

The formula is built like this: =PERCENTILE.INC(array, percent rank)

  • array(array) is the range of cells that make up the list (as in the previous example, B3:B37)
  • rank(rank) is a percentage (or decimal from 0 to 1 inclusive)

As with the percentage ranged function, you can use the =PERCENTILE.EXC function, which excludes the first and last value array, but in our case it is not necessary.

Step 1

Select a cell below the list B39.

Step 2

Insert the following formula into it: =PERCENTILE.INC(B3:B37.60%)

Since we don't need to use autocomplete, there is no need to make the array immutable.

Step 3

On the ribbon, press the key once Decrease Decimal(Decrease Decimal) to round the number to two decimal places.

As a result, in this array, the 60th percentile will be the average score of 3.23. Now you know what grades are needed in order to be accepted into the program.

The result of the percentile function

Conclusion

Interest isn't compound at all, and Excel calculates it using the same math rules you'd use on paper. Excel also uses the common order of operations when your formula includes addition, subtraction, and multiplication:

  1. Parentheses
  2. Exponent
  3. Multiplication
  4. Division
  5. Addition
  6. Subtraction

I remember this order with a mnemonic phrase: Sk azal St epan: Mind ora, D come on sl ovim AT ora.

Greetings! I don’t know about you, but I like to double-check everything after everyone. Therefore, I conduct my calculations on investments for myself in Excel on home computer. Well, I don't trust all those online calculators on the web! And in general, when you enter all the numbers with your hands, the management becomes somehow more conscious, or something ...

Today I will tell you how to make a formula in Excel with interest on a deposit (or any other investment instrument). Interest will be taken into account, of course, not simple, but compound. Just in case: this is when you do not withdraw the already accrued interest, but immediately add it to the deposit amount.

Consider the simplest option - once you have invested money somewhere, and they are slowly “multiplying” there without additional injections. The simplest calculation in Excel can be done in two ways: manually and using a special function.

For this we need this formula:

  • FC is our final capital or end result. In general, the amount that we will receive at the finish line, taking into account the cumulative effect of compound interest. By the way, it sets you up for regular investments! It is useful to see with your own eyes what amounts even small investments turn into in 5, 10 or 20 years.
  • Co is the initial capital that we invest for a long time according to the principle “invested and don’t touch”
  • R - annual interest rate in shares (for example, 12% per annum will look like 0.12)
  • m is the reinvestment period in months. Simply put, how often interest will be charged on the deposit and added to total amount. If the bank deposit rate is charged every month, then m will be equal to 1, if quarterly - then 3, if once a year - then 12
  • n is the number of reinvestment periods. For example, if interest is reinvested once a month, then there are 12 reinvestment periods per year, and for five years n will be 60

Now it remains to form a simple tablet in Excel: five lines and two columns.

  • Line number 1 - initial capital (Ko)
  • Line No. 2 - annual interest rate (R)
  • Line No. 3 - reinvestment period (m)
  • Line number 4 - the number of periods (n)
  • Line number 5 - the final amount of capital (FC)

We fill in the first four lines manually. In each of them, the format will be "general", and only the annual interest rate must be entered in percentage format.

And then in the cell with the final capital we fill in the formula (by line numbers): =#1*(1+(#2*#3/12))^#4. Just in case, the “^” icon in Excel is located like this: “Insert” - “Symbol” - “^” - “Insert”, or using the key combination “Shift + 6” in the English layout.

Everything, the simplest table in Excel is ready! Now you can "play" with the size of the initial capital, the annual rate and the number of periods. And see how the value of the final capital grows (or decreases).

With special function

Excel is such a versatile program that a special function will help us calculate the potential return on the deposit. To get started, go to the "Formula" tab (at the very top of the page) and click on the fx symbol or "Insert Function" (in the upper left corner).

The "Function Wizard" window immediately opens. In the search bar, enter BS (for those who are not in the know, BS is the future value) and press Enter. drops out whole list incomprehensible names - we choose the same BS. Or you can just manually select from the Financial category.

As a result, a tablet appears on the screen, which must be filled in with the data from the formula that I gave above.

  • The "Rate" field is the same annual interest rate in shares. If interest is accrued monthly, then we divide the annual interest by 12, if quarterly, then by 4, etc.
  • The Nper field is the number of years of investment. If payments are made once a month, then we multiply the number of years by 12, and so on.
  • Field "Pt" - leave empty
  • Field "PS" - the initial size of the contribution. Here it must be written with a minus sign, since we give our hard-earned money, but do not receive it.
  • The "Type" field takes into account the method of paying interest on the deposit
  • If interest is paid at the end of the deposit term, then put "0" or leave the field blank
  • If at the beginning of the term - then "1".

Click on OK - and voila! The size of our future capital is already displayed in the cell!

Test Case

For example, I took the amount of $ 10,000 placed on a deposit with a rate of 6% per annum for a period of 4 years.

Both options gave the same result - in 4 years my contribution will grow to $12,704.89. This, of course, provided that the capitalization of interest will be monthly.

I can say that the first calculation method takes a little more time, but it is clearer and more “thoughtful”.

By the way, other investment parameters can be calculated with more complex formulas: the return on a deposit with regular replenishment, overpayment on a loan, the annual interest rate, the amount of initial capital, and much more.

If you want me to tell you how any of the above functions are calculated - leave your wishes in the comments below this article. How do you usually calculate compound interest?

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