# 5 Ways to Create Quarterly Compound Interest Calculator in Excel

In this article, I’ll show you three excellent methods on how to create quarterly compound interest calculator in Excel. We can calculate interest on an investment in a number of ways, one of which we call “quarterly compounding,” in which we will add interest to the capital every three months rather than once a year. Interest accrued in one quarter is used to fund interest in the subsequent quarter and so on. Over time, this yields a better rate of return than annual compounding. Furthermore, these strategies will allow you to solve the problem that brought you here. However, you will learn some important Excel features and functions in this post that will come in handy for any Excel task. Contents

## What is Quarterly Compound Interest?

Quarterly compounding refers to the process of calculating interest on a principal amount every quarter, or four times per year. This means that the interest that we earned on the principal amount is every three months, rather than annually. Common examples of loans and investments that involve compound interest include credit cards, mortgages, auto loans, and student loans. It’s also a common method for investing in the stock market and other long-term ventures like savings accounts.

If you want to know how much interest you’ll earn every three months, use this formula: Where,

A = total amount after n periods of compounding

P = Principal amount

r = Annual interest rate

n = Number of times interest is compounded per year

t = Number of years

For example, if you have an investment of \$10,000 with an annual interest rate of 4% compounded quarterly, the calculation of the total amount after 5 years will be:

A = \$10,000 (1 + 0.04/4)^(4*5) = \$11,621.64

## What is Compound Interest Calculator?

A compound interest calculator is a tool that calculates the amount of interest earned on a principal amount of money over a certain period of time, taking into account the effect of compounding. Compounding refers to the process of earning interest on both the principal amount and any interest. The compound interest calculator allows the input of the principal amount, the annual interest rate, the number of compounding periods per year, and the number of years the investment.

## Learn to Create Quarterly Compound Interest Calculator in Excel with These 5 Useful Techniques

Here in this article, we will learn how to quarterly create a compound interest calculator in Excel using different approaches. To be exact, I’ve provided a total of 3 methods down below. Here we will consider a dataset that contains the initial amount, yearly interest rate, and total time. Method

### 1. Calculate Quarterly Compound Interest Using Generic Formula

Firstly we will employ the manual approach to calculate Quarterly Compound Interest using Formula. Through the years, this has proven to be the most popular approach. You only just have a basic grasp of maths to use this technique. You may find the formula and specifics in my previous post.

Let’s explore this approach step by step.

⬇️⬇️ STEPS ⬇️⬇️

• Select cell C9.
• Inset the following formula:

=C6*((1+C7/4)^(C8*4))

• Press Enter button to see the result. Finally, you will be able to create a quarterly compound interest calculator.

Method

### 2. Calculate Quarterly Compound Interest with Regular Deposit

Now we will quarterly compound interest with regular deposit. When compared to the conventional approach, this one has some notable differences. We’ve already covered our bases with fixed deposits; now we’ll go to discussing dynamic deposits. In order to achieve our objective, we shall once again resort to the application of elementary mathematical formulas. The steps are given below.

⬇️⬇️ STEPS ⬇️⬇️

• First, select cell E6.
• Write down the following formula:

=D6+D6*(\$H\$6/12) • Consequently, hit Enter and drag the fill handle to see the output.
• Later go to cell D7 and insert this formula:

=E6+C7 • Press Enter and drag the fill handle to see the output. Accordingly, you will be able to create a quarterly compound interest calculator.

Method

### 3. Use of FVSCHEDULE Function to Calculate Compound Interest

Now we will FVSCHEDULE function to calculate Quarterly Compound Interest. An investment’s expected future value can be calculated using a range of compound interest rates and the FVSCHEDULE function in Excel. The principal amount and the interest rate schedule are the two required pieces of information.

Principal: The initial amount deposit.

Schedule: A range of interest rates for each period of the investment, which must have the same number of rows and columns as the principal.

Here is how the function’s syntax looks:

FVSCHEDULE(principal, schedule)

Here I demonstrated the process step by step.

⬇️⬇️ STEPS ⬇️⬇️

• Pick cell C10.
• Insert the following formula:

=FVSCHEDULE(C6,{0.03,0.03,0.03,0.03}) • In the same way, press Enter to see the results.

That’s how you will be able to create a quarterly compound interest calculator.

Method

### 4. Application of FV function to Measure Compound Interest

Here we applied the FV function in this method. Nowadays, one financial tool available in Excel is the FV function, which stands for Future Value. Moreover, this function estimates how much money an investment will be worth in the future. Hence the interest rate, the number of periods, and the present value or amount invested are the three inputs.

In Excel, you may use the following syntax for the FV function:

FV(rate, nper, pmt, [pv], [type])

rate: the annual percentage rate at which a capital investment generates a return.

nper: The number of investment payment cycles

pmt: the payment made each period. This can be a fixed amount or a variable amount. If this value is omitted or left blank, it is assumed to be zero.

pv: the present value or amount invested. If this value is omitted or left blank, it is assumed to be zero.

type: a value indicating when payments are made. This can be either 0 (payments made at the end of the period) or 1 (payments made at the beginning of the period). If this value is omitted or left blank, it is assumed to be 0.

I will show the steps of the technique one by one.

⬇️⬇️ STEPS ⬇️⬇️

• First select cell C9.
• Write down the following formula:

=FV(C7/4,C8*4,0,-C6) • Press Enter to see the output.

Thus you will be able to create a quarterly compound interest calculator.

Method

### 5. Use VBA Macro to Calculate Quarterly Compound Interest Calculator

Finally, we will use the VBA Macro option to solve this problem. However, Excel VBA macros are a collection of instructions that can be used to automate a variety of operations, including data preparation, chart creation, and calculation. Moreover, examples of VBA macro functionality include the creation of a new worksheet with pre-populated data taken from another worksheet depending on certain criteria and the automatic formatting of a set of cells each time the workbook is accessed.

Here, I gave a detailed explanation of the procedure.

⬇️⬇️ STEPS ⬇️⬇️

• First, right-click on the sheet name and select the View Code option.
• Write down the following VBA code:
``````Sub quarterly_Compound_interestcalculator()
Dim p As Integer
Dim r As Single
Dim t As Integer
Dim A As Double
p = InputBox("Insert Principal Amount")
r = InputBox("Insert Yearly Interest Rate")
t = InputBox("Insert Time(year)")
A = p * ((1 + r / (100 * 4)) ^ (4 * t))
MsgBox "Final Amount:  " & A
End Sub`````` • Consequently, run the VBA code.
• Following that input all the data in the input box. • Accordingly, you will see the results displayed in a message box. Hence, you can create a quarterly compound interest calculator.

## How to Create Monthly Compound Interest Calculator Excel

In this method, we will calculate Monthly Compound Interest using the conventional formula which we discussed at the beginning of the article. We simply input the values in the formula box and here are our final results. The approach is explained step by step below.

⬇️⬇️ STEPS ⬇️⬇️

• First, select cell C9.
• Write down the following formula:

=C6*((1+C7/12)^(C8*12))

• Press Enter button to see the result. Finally, you will be able to calculate monthly compound interest.

## How to Make Daily Compound Interest Calculator in Excel

The daily compound interest calculation in this technique follows the standard formula presented at the outset of the article. After putting the numbers into the calculator, we get the following results similarly. The steps are given here.

⬇️⬇️ STEPS ⬇️⬇️

• First of all, select cell C9.
• Write down the following formula:

=C6*((1+C7/365)^(C8*365))

• Press Enter button to see the result. Hence, you will be able to calculate daily compound interest.

## How to Calculate Compound Interest with Formula Between Two Dates in Excel

In this approach, we will use the standard formula similarly for calculating Compound Interest between two dates, as we did at the outset of the article. However, the formula will be tweaked ever-so-slightly. The process is explained below:

⬇️⬇️ STEPS ⬇️⬇️

• Primarily select cell C9.
• Inset the following formula:

=C6*((1+C7/365)^(C9-C8))

• Press Enter button to see the result. Finally, you will be able to calculate compound interest between two dates.

## 📄 Important Notes

`🖊️`  Verify that you’ve employed Absolute Reference when requires. To get an absolute cell reference, press F4.

`🖊️`  However, always look for ways that are easy to use in different situations.

`🖊️`  Finally, every time you try to use shortcuts on the keyboard.

`📌`  You can calculate quarterly compound interest in Excel.

`📌` Moreover, You can quarterly compound interest in Excel for regular deposits.

`📌`  In addition, You can daily compound interest in Excel.

`📌`  Finally, you can monthly compound interest in Excel.

## Conclusion  