How to calculate compound interest in Excel and Google Sheets

Excel & Google Sheets

=A2*POWER(1+B2, C2)

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Verified example

Computed by a real spreadsheet engine on the sample data below.

Principal	Rate	Years
1000	0.05	3

=A2*POWER(1+B2, C2)→1157.625

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Sample data — click any cell to edit

Cell row 1 column 1	Cell row 1 column 2	Cell row 1 column 3
Cell row 2 column 1	Cell row 2 column 2	Cell row 2 column 3

Formula

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1A2 is the principal, B2 the rate per period (0.05 = 5%), C2 the number of periods.
2POWER(1+B2, C2) is the growth factor over all periods.
3Multiplying by the principal gives the future value.

For monthly compounding, use the monthly rate (annual/12) and months as the period count.
Subtract the principal (=A2*POWER(1+B2,C2)-A2) to get just the interest earned.

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Divide the annual rate by 12 for B2 and use the total number of months for C2.

Written and reviewed by FormulaCraft Team. Each formula on this page is run through our verification engine before publishing.

Last reviewed: May 28, 2026