The formula
Compound interest formulaExcelGoogle Sheets
=B1*(1+B2/B3)^(B3*B4)In D1 → $16,470.09
Same with FVExcelGoogle Sheets
=FV(B2/B3,B3*B4,0,-B1)In D2 → $16,470.09
Interest earnedExcelGoogle Sheets
=B1*(1+B2/B3)^(B3*B4)-B1In D3 → $6,470.09
Continuous compoundingExcelGoogle Sheets
=B1*EXP(B2*B4)In D4 → $16,487.21
✓ Tested. All 4 Excel results in this example were recalculated in LibreOffice Calc 25.2 and matched the values shown.
Worked example
Paste the data below into a blank sheet starting at cell A1 (or download the cheat sheet, where every example is set up). Highlighted cells hold the formulas and show the expected results.
| A | B | C | D | |
|---|---|---|---|---|
| 1 | Principal | 10,000 | $16,470.09 | |
| 2 | Annual rate | 5% | $16,470.09 | |
| 3 | Periods per year | 12 | $6,470.09 | |
| 4 | Years | 10 | $16,487.21 |
How it works
- B1
- Starting amount.
- B2/B3
- Rate per period.
- B3*B4
- Total number of periods.
- FV(rate,nper,0,-pv)
- 0 = no extra deposits; -pv so the result is positive.
Common errors and fixes
Huge result?
The rate was entered as 5 instead of 5% (0.05).
Negative result from FV?
Put the minus before the present value.
Does this work in Google Sheets?
Yes. The formulas on this page work the same way in Google Sheets.