# How to calculate compound interest rate in excel?

To calculate compound interest rate in Excel, you can use the formula: = (1 + interest rate) ^ (number of compounding periods) – 1 where “interest rate” is the annual interest rate and “number of compounding periods” is the number of times interest is compounded per year. For example, to calculate the compound interest rate for an investment of \$1,000 with an annual interest rate of 5% compounded quarterly over 3 years, you would use the formula: = (1 + 0.05/4) ^ (4*3) – 1 and the result would be 0.1639 or 16.39%.

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