Formula for regular monthly savings

gakochan

Hi everyone.

I'm trying to set up an Excel formula that will calculate the return on £M invested monthly for N months in an account with X% interest (compounded).

Can anyone help?

Thanks very much and good luck to all!

Cheers
gako

Chippy_Minton

Use the FV worksheet function.

grumbler

gakochan wrote:

...I'm trying to set up an Excel formula that will calculate the return on £M invested monthly for N months in an account with X% interest (compounded).

You are not the first one:

' Regular saving v fixed rate accounts ' thread ...

Also: 'compound interest-how do I work it out?'

H2SO4

Use the NPV (Net Present Value) function in Excel - input an interest rate and each amount.

bluesnice

you could also check this out:

http://money.guardian.co.uk/calculator/form/0,1456,603126,00.html

Chris2000

gakochan wrote:

Hi everyone.

I'm trying to set up an Excel formula that will calculate the return on £M invested monthly for N months in an account with X% interest (compounded).

=M*((1+X)^(N/12)-1)/(1-(1+X)^(-1/12))

or using the FV function as suggested:
=FV((1+X)^(1/12)-1,N,-M,0,1)

5% interest would be X=5% or 0.05, not X=5.0.

These formulae are based on true compound interest, so use the Annual Equivalent Rate (AER), excluding short-term introductory bonues, net of tax at the appropriate rate.