Excel Formulas to Compare the Effect of Compounding Periods!!
Tags: excelformula, excelformulas
Published: 2021-06-30 01:54:38

---
title: Excel Formulas to Compare the Effect of Compounding Periods!!
published: true
date: 2021-06-22 14:16:58 UTC
tags: ExcelFormula,Excelformulas
canonical_url: https://geekexcel.com/excel-formulas-to-compare-the-effect-of-compounding-periods/
---

 **Compound interest** is one of the basic building blocks in banking and one of the most powerful financial forces around that determine the outcome of your investments. Here we will show the formulas to **compare the effect of (non-annual) compounding periods on growth in Excel**. Let’s jump into this article!! Get an official version of ** MS Excel**  from the following link: [https://www.microsoft.com/en-in/microsoft-365/excel](https://www.microsoft.com/en-in/microsoft-365/excel)

[![Compare the Effect of Compounding Periods](https://geekexcel.com/wp-content/uploads/2021/06/Compare-the-Effect-of-Compounding-Periods.png)](https://geekexcel.com/excel-formulas-to-compare-the-effect-of-compounding-periods/compare-the-effect-of-compounding-periods/#main)<figcaption id="caption-attachment-47834">Compare the Effect of Compounding Periods</figcaption>

## Generic Formula:

- You can use the below formulas to compare the effect of (non-annual) compounding periods in Excel.

**=FV(rate,nper,pmt,pv)**

## Syntax Explanations:

- **FV** – In Excel, the **FV function** helps to return the future value of an investment.
- **Rate**  – It represents the interest rate.
- **Pv ** – The present value of all future payments.
- **Term** – It represents the loan years.
- **Minus Operator (-)** – This symbol will help to subtract any two values.
- **Comma symbol (,)** – It is a separator that helps to separate a list of values.
- **Parenthesis ()** – The main purpose of this symbol is to group the elements.

## Practical Example:

Let’s consider the below example image.

- First, we will enter the input values in **Column B** and **Column C**.
- Here we need to compare the effect of compounding periods.

![Input Ranges](https://geekexcel.com/wp-content/uploads/2021/06/Input-Ranges-61.png)<figcaption id="caption-attachment-47836">Input Ranges</figcaption>

- Select any cell and apply the above-given formula.

![Enter the formula](https://geekexcel.com/wp-content/uploads/2021/06/Enter-the-formula-75.png)<figcaption id="caption-attachment-47835">Enter the formula</figcaption>

- Finally, press the ** ENTER**  key, you can get the result as shown below.

![Result](https://geekexcel.com/wp-content/uploads/2021/06/Result-62.png)<figcaption id="caption-attachment-47837">Result</figcaption>

## Wind-Up:

In this chapter, we have described the formulas to **compare the effects of (non-annual) compounding periods in Excel**. Let me know if you have any **doubts** regarding this article or any other article on this site.  
Thank you so much for visiting  **[Geek Excel](https://geekexcel.com/)!! **If you want to learn more helpful formulas, check out [**Excel Formulas**](https://geekexcel.com/excel-formula/) **!! **

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- **[Excel Formulas to Calculate the Payment Periods for Loan ~ Easy Tips!!](https://geekexcel.com/excel-formulas-to-calculate-the-payment-periods-for-loan/)**