In this article, we will calculate the interest between two dates in **Excel**. We need to calculate interest for many purposes, such as bank loans, house loans, savings, etc. One can calculate these interests manually but if we need to calculate the interests for a big dataset that will be time-consuming. Here, **Excel **can help us to make the process easier by using different built-in functions and custom formulas.

Look at the overview of this article. The first table illustrates our dataset and the table below that describes the methods, outcomes, and formulas we used.

**Contents**hide

## π Download Excel File

Download the Excel file below.

## Learn to Calculate Interest Between Two Dates in Excel with These 2 Suitable Approaches

In this article, we will learn two approaches for calculating interest between two dates in **Excel**. From the dataset, we can see that the loan amount is **$12000** for **4** years. The annual interest rate is **8%**. Now here we will calculate the interest amount for **Jan 15** to **Feb 15, 2023**.

**approach**

### 1. Calculating Interest Using Customized Excel Formula

In the first approach, we will use a custom **Excel** formula to calculate the simple interest of a given amount. Here is the formula for simple interest.

**Simple Interest = P Γ i Γ n**

**Where, P = Principle Amount**

**Β Β Β Β Β Β Β i = Rate of Interest**

**Β Β Β Β Β Β Β n = Time Period**

We will calculate the simple interest based on this given formula with a custom **Excel** formula.

**β¬οΈβ¬οΈ STEPS β¬οΈβ¬οΈ**

- First, go to the
**Formulas**worksheet. - We will compute the interest amount here. As you can see, weβve added a new row to compute the interest amount.

- Select cell
**C11**. - Enter the following formula.

`=C5*(C10-C9)*C6/365`

π¨ **Formula Breakdown **

**C5*(C10-C9)*C6/365**

π Here, **C5** is the principle.

π Here, **C10**β**C9 **indicates the total number of days for which we are counting the interest amount.

π And **C6/365** is used to convert the annual interest to the daily interest rate. **365 **is the number of total days in a year.

- Press the
**Enter**key.

Here we have calculated the interest for the **33** days starting from **15 Jan** to **17 Feb**.

**π Read More: ****5 Examples to Calculate Monthly Interest Rate in Excel**

**approach**

### Β 2. Excel IPMT Function for Calculating Interest Between Dates

In the second approach, we will use the **IPMT** function. The** IPMT** function takes a few inputs and returns an interest amount for a given interval of time based on the inputs. The inputs are the interest rate, the interval of time for which we want to calculate the interest amount, the compounding period per year, and the amount for which we want to calculate the interest.

**β¬οΈβ¬οΈ STEPS β¬οΈβ¬οΈ**

- To begin, go to the
**IPMT**worksheet. - We have introduced three new rows in this worksheet. The period row contains the period for which we are calculating interest. Which contains
**1**. Because at first we are going to calculate the interest amount per day and then we will calculate interest between two dates.

- Then select cell
**C12**. - Enter the following formula.

`=IPMT(C6/365,C11,C7*365,-C5)`

π¨ **Formula Breakdown **

**IPMT(C6/365,C11,C7*365,-C5)**

π Here we converted the annual interest rate to the daily interest rate by using **C6/365**.

π **C11** is **1** which indicates that we are calculating the interest for **1** day.

π **C7*365 **is used to calculate the total number of repayments in four years.

π **-C5 **means the amount of money for which we are calculating interest. The **IPMT **function usually returns a negative value as it indicates the cash outflow. To make it positive we used a negative sign before the amount.

- The previous formula calculated the interest for one day.
- Now, we will have to calculate the interest for the given time period, starting from
**15 Jan**to**17 Feb**. For this, we will go to cell**C13**and enter the following formula.

`=C12*(C10-C9)`

π¨ **Formula Breakdown**

**C12*(C10-C9)**

π **C12** represents interest per day.

π **C10-C9**Β calculates the total days between the given two dates.

- Now we get the interest amount for the given time period has been calculated.

**π Read More: ****4 Approaches to Calculate Home Loan Interest in Excel**

## π Takeaways from This Article

π Here, we calculated interest between two dates using a custom **Excel** formula based on the basic mathematical formula.

π We have learned the use of the **IPMT** function in **Excel**.

π We also learned what is simple interest and how to calculate that using formula.

## Conclusion

Finally, we have come to the end of this article. In this article, we tried to provide every possible way to calculate interest between two dates in **Excel**. As many methods have been demonstrated here, you may quickly choose which one is suitable for you. If you have any questions, please leave them in the comments. Finally, we propose that you visit **ExcelDen** to discover more about **Excel**.

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