Making a Compounding Interest Calculator in Excel

👍 Ready made and ready to use.

Follow along to make your own template on the EIGHTH WONDER of the world - Compounding. It shows you how long it will take you to become a millionaire. The chart also uses dynamic Named Ranges, using Offset, to make a beautiful chart that updates automatically.

Compounding is where you invest some money, get a return (say 10%), then reinvest your earnings. Over time your amount grows, so 10% of your increased amount is higher. This starts out small but soon grows exponentially to make you a millionaire.

A Compounding Interest Calculator shows you how much you need to invest, at what percentage, and over what period of time, and how much your investment will grow to.

#Excel #Millionaire

Timestamps:
00:00 Intro and Compounding Overview
01:55 Blank Template
02:54 Total Amount Contributed
03:21 Compounding Table
05:20 Final Amount
06:30 Creating a named range
07:35 Compounding Chart

[craiglibby]

I just found your channel. Great explanation on how to create a compound interest chart. Question: How would you modify it to add additional streams of contribution at specific years vs. just the one annual field? Example: I retired 4 years ago. At a specific age I will start collecting Social Security (I live in the United States). Additionally, I invest in commercial real estate crowdfunding with specific year payouts. How would add those amounts in specific years, as well?

[shawnpeters]

Great video and nice and quick. Question though, for you or anyone - how do you add in fees? For example I am trying to show the impact of MER's on growth. I can do it by building out a large worksheet but can not figure out how to have work dynamically as you have done here. Thank you in advance.

[jasonontheradio]

When you add 6, 000 plus the one 8% interest, the total is 6, 480.
Then you add the additional 6, 000 next year, so total now is 12, 480.
That then is the basis of the next 8% interest earning, which comes to 998.40, which is 8% of 12, 480
Add 12, 480 and your interest of 998.40, your total comes to 19, 478.40. And so on and so forth.
This is supposed to be the correct computation for COMPOUNDING INTEREST. Kindly correct me if I am wrong.

[ciegosordo]

Is there a way to create a calculator in which the additional yearly deposits increase? So depositing $20, 000 this year, then $21, 000 the next, etc.

[evilmarc]

Tech is crazy. I just made this with Gemini AI in two minutes

[santiagomiguelblanco]

Good morning from east coast. I followed your instructions to the t using excel on a Macbook-was very challenging but a beautiful sheet. I tried to expand the row to 25 years and somehow, my chart only shows 22 years. On checking the math using an hp 12c financial calculator and compounding interest every month over a 12 month period at 8% annual interest rate divided by 12 months (0.67%) with a $500 monthly deposit (over 15 yrs-180 months), with $6000 initial investment, I come up with a grand total of $153, 177.58 yet, the created sheet shows $175, 945.70 beginning with formula=C2*(1+C3) on cell C8. Please explain. Google AI gives an approximation that nearly identical, thanks

[financialcheatcodes]

Stuck at the offset formula. It keeps giving me the full range and unable to adjust. Great tutorial other than that, I'll just go without the chart

[propertylegends]

I get lost from "creating a name Range" where you start with offset formula. I am using the same example but get a different answer when doing the offset part. Your answer is 68925 and i get 6480. PLEASE HELP. I am also strugling with the chart.

[rexsales]

I got lost when you dragged it across pls help