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+--- Thread: Excel experts- want a simple formula for figuring compound interest (/showthread.php?tid=214123)
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Excel experts- want a simple formula for figuring compound interest - tuqqer - 02-28-2018
I used to have an excel sheet that could calculate compound interest on a daily basis. For example, I could start with 1,000, then add a steady daily return (say 1% interest each day), and then plug in the number of of days to see what the total would be after a month or a year.
Also, if possible, I'd want the ability to know the number of days it would take to reach a certain return, such as 150% (ie, 50% profit), so you can figure out how many days it would take to reach that return.
Does any one know the formula for doing that?
Re: Excel experts- want a simple formula for figuring compound interest - cbelt3 - 02-28-2018
http://www.excelfunctions.net/compound-interest-formula.html
Re: Excel experts- want a simple formula for figuring compound interest - pdq - 02-28-2018
I would guess if A1 contained the principal, and A2 the daily interest rate (in percent), and A3 the number of days, then what you’re looking for would be (A1*(1+(A2/100))exp(A3)).
If A2 were an annual (simple) interest rate, compounded daily, I think it would be (A1*(1+(A2/36500))exp(A3)).
Wait! Where are you getting 1% daily interest? Fess up!
Re: Excel experts- want a simple formula for figuring compound interest - Paul F. - 02-28-2018
1% a DAY?
I want in... who do I have to kill?
Re: Excel experts- want a simple formula for figuring compound interest - tuqqer - 02-28-2018
Yeah well, guaranteed? Let me know when you find that, too
But I've been playing almost full time in cryptocurrency trading since October, and with some of the autobots, and using the forums of people using those bots and sharing their strategies, that 1% daily is a fairly common return. It goes up and down, of course. But that's why I wanted an excel sheet where I could do changeable daily interest to get some overall averages.
I think I figured it out. I don't think there's a way to attach files here, so here's a Dropbox link:
https://www.dropbox.com/s/k2k3edp3ok3bxno/Compound_Interest_Chart_Feb2018.xlsx?dl=0
Re: Excel experts- want a simple formula for figuring compound interest - Acer - 02-28-2018
Yeah, sure, Bitcoin. I bet tuqqer is actually a payday lender.
Re: Excel experts- want a simple formula for figuring compound interest - tuqqer - 02-28-2018
COME ON BY! Gladly cash your pay check.
Re: Excel experts- want a simple formula for figuring compound interest - pdq - 02-28-2018
pdq wrote:
I would guess if A1 contained the principal, and A2 the daily interest rate (in percent), and A3 the number of days, then what you’re looking for would be (A1*(1+(A2/100))exp(A3)).
Got to work, and Excel doesn't like that formula. What I was trying to do was raise (1+(A2/100)) to the power of (A3), and then multiply that by A1. I've obviously got my Excel syntax wrong...
Okay, it looks like the function I'm looking for is POWER, and the formula to put in cell D1 is "=A1*POWER(1+(B1/100),C1)" (without the quotes) (or if you want to put in a first row of headings ("principle", "daily rate", "days", "total") put "=A2*POWER(1+(B2/100),C2)" into D2).
At a uniform 1% a day, compounded daily, it looks like $100 would turn into $3778.34 after a year!
Re: Excel experts- want a simple formula for figuring compound interest - tuqqer - 02-28-2018
pdq wrote:
At a uniform 1% a day, compounded daily, it looks like $100 would turn into $3778.34 after a year!
Yeah, crazy. Compound interest can almost always appear incorrect.
And impossible to maintain steady dailies in most things. But I like to work with theoretical models, so I know the edge of possibilities.
thanks again for the help.
Re: Excel experts- want a simple formula for figuring compound interest - space-time - 03-01-2018
I am puzzled how one can work in this field without knowing how to do this in Excel.