To calculate interest between two date ranges in Excel:
1. Calculate the number of days between the two dates by subtracting the start date from the end date and adding 1.
2. Use the formula:
Code:
= (P * r * t) / 365
Whe
-
P is the principal amount
-
r is the annual interest rate
-
t is the number of days between the two dates
3. Simplify the formula by using Excel's built-in functions. You can use the
ROUND function to round the result to two decimal places.
4. Press Enter to calculate the result.
For example, let's say you have a principal amount of
$10,000, an annual interest rate of
5%, and you want to calculate the interest between
January 1, 2021 and
March 31, 2021.
Using the above steps, the final formula would look like this:
- Calculate the number of days:
Code:
=DATEDIF("1/1/2021","3/31/2021","d")+1
- Plug in the values into the formula:
Code:
=ROUND((10000 * 0.05 * 90) / 365, 2)
- Press Enter to calculate the result. In this case, the interest would be $123.29.
That's it! I hope this helps you calculate interest between two date ranges in Excel.