Calculate return on investment (excel formula)?

Oct 2014
46
0
Mars
Hello everyone,

I'm a bit stumped on this one. Assuming I have the following cells:
A1: original deposit
A2: the interest rate (%)
A3: the duration in days which the interest rates applied to
A4: days invested

How can I calculate the total return (including the original deposit)?

For example, if the interest rate per 7 days is 3%, and I want to find the total return after 30 days, the cells would look like:
A1: $100
A2: 3%
A3: 7
A4: 30

I appreciate your help :)
 
Apr 2014
1,013
348
UK
I'm going to make some assumptions here:
1) The numbers in those cells are as written (i.e. cell A2 contains '3')
2) Given that this is a 'return' (on investment?) rather than a loan, the interest will be paid after each full duration in cell A3
3) Compound interest applies

So what we need is:
The original amount * (the rate)^(whole numbers of(investment days / interest period))
=A1*(1+ A2/100)^(int(A4/A3))
I pasted this into an excel cell and it gave me $112.55.

Edit:
If cell A2 contains '3%' then the rate is simply (1+ A2) in the formula rather than (1+A2/100)
 
Last edited:
  • Like
Reactions: 2 people