Comments on: How To Calculate APR And APY In A Spreadsheet – And Why You Would Want To http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/ Financial talk for the rest of us Sat, 16 Feb 2013 01:14:45 +0000 hourly 1 http://wordpress.org/?v=3.5.1 By: Rich http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-915814 Rich Fri, 25 Jun 2010 17:10:03 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-915814 Calculating the APR just using a calculator, how do you do that?
APR=((1+B1)^(1/B2))-1
APR=((1+.024)^(1/12))-1) or
APR=1.024^.08333-1

]]> By: crayonman http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-691831 crayonman Wed, 10 Jun 2009 04:06:34 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-691831 Really helpful blog post. Calculating APR is a biatch.

I was also searching for what is and is not included when making the APR calculation- what fee’s etc.
For those curious:

http://www.bankapedia.com/mortgage-encyclopedia/faqs/371-what-is-and-is-not-included-when-calculating-apr

]]> By: Hobbes http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-633938 Hobbes Mon, 20 Apr 2009 08:43:47 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-633938 Thanks man great post.

Doug @ #24 – are these functions in an addon because they are not among my excel 2003 SP2 functions?

]]> By: Doug http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-589107 Doug Tue, 24 Mar 2009 00:35:47 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-589107 FYI,

The Excel Functions EFFECT and NOMINAL are available to calculate these along with other functions to calculate loan payments (PMT), payments on Principal (PPMT), Future value (FV),

]]> By: Andy http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-431205 Andy Thu, 04 Dec 2008 05:05:34 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-431205 Thanks for the article. I’ve tested the formula and I figured it needs to be changed to =(1+(B1/100)/B2)^B2-1 in order to give correct answers in percentage format.

]]> By: Rie http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-383943 Rie Tue, 30 Sep 2008 22:34:30 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-383943 What is the APR for $46,638. if the APY is 5.50%, and the term of the CD is 4 years. How much interest paid may I expect at the end of 4 years?

]]> By: wolf http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-365827 wolf Mon, 01 Sep 2008 04:59:58 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-365827 num 17 i have the same question we dont understand this compound interest we ben doing the simple way just cant understand it we ll you show us step by step .

]]> By: Tracy http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-335388 Tracy Wed, 23 Jul 2008 14:25:37 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-335388 Thanks for the formulas – I’ve been searching for some time. Can you walk me through the manual calculation (non-excel)?

]]> By: Very helpful http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-281641 Very helpful Tue, 20 May 2008 17:18:54 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-281641 Thanks for the explanation with details.
Zaya Khananu

]]> By: Jenelle http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-263442 Jenelle Sat, 03 May 2008 15:46:42 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-263442 Thank you, your excel conversion was really helpful. I wish I’d read this before opening my new, supposedly illustrious savings account.

]]> By: MERS http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-252050 MERS Wed, 23 Apr 2008 23:57:42 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-252050 everything is ok, but how do banks calculate your apy on the cd accts. What is the formula to do the calculation?

]]> By: tegegne http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-173208 tegegne Mon, 04 Feb 2008 18:56:56 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-173208 If I invest $5.000 in 4 month CD with a 3.4% APY, what would it be my retrn and how do you calculate that?

]]> By: Bogdan http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-168790 Bogdan Thu, 31 Jan 2008 11:35:35 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-168790 Thanks very much for this excellent post.

]]> By: Thomas J. http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-160300 Thomas J. Sun, 20 Jan 2008 20:31:07 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-160300 This has been throwing me for a long time. Thank you, thank you, thank you!

]]> By: AJ http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-152298 AJ Thu, 10 Jan 2008 22:30:47 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-152298 Trent,
Do you know what the formula is to calculate APR on an interest-only loan?

]]> By: David G. http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-148885 David G. Sat, 05 Jan 2008 17:12:20 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-148885 Trent,
Great Blog, Question for you : If I borrow $16,500.00 for 4 months and pay back 17,470.00 what is the rate of interest I paid.

TIA David

]]> By: Chris http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-61020 Chris Thu, 23 Aug 2007 17:10:14 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-61020 For the 6 mo. CD 5.67% APR/5.75% APY example, be sure to enter “2″ for the “# times a year” entry as the assumption is that you will leave the money in a year, the rate of return will NOT change at the 6 mo. point, you will get reinvested interest at the 6 mo. point, and then get interest again at the 1 year point. The Excel formula works for your example if you don’t forget the two point in time at which interest is assumed paid.

]]> By: Chuck http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-55441 Chuck Thu, 09 Aug 2007 14:57:17 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-55441 I am a little confused here.

The bank is offering a 6 month CD special with a rate of 5.67% with an APY of 5.75% simple interest that pays at the end of the term. When I put a rate of 5.67% on a 12 month term the APY is the same as the rate.

Why? Wouldn’t the 12 month CD offer the same APY as the 6 month term?

]]> By: Scott http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-46558 Scott Sun, 15 Jul 2007 04:05:00 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-46558 thanx a heap…trying to figure out what we will have for a family vacation. Works like a charm
!!!!

again thanx!

]]> By: Greg http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-42669 Greg Wed, 04 Jul 2007 13:26:52 +0000 http://www.thesimpledollar.com/2007/06/23/how-to-calculate-apr-and-apy-in-a-spreadsheet-and-why-you-would-want-to/#comment-42669 I finally figured out why I could not match my bank’s savings account calculations. I was doing everything right except using the right interest rate! I had to first convert from APR to APY. It’s interesting that the bank’s comments on how interest is calculated is rather vague–it says it applies a “daily periodoc rate” to the daily balance–but does not say how that rate is calculated. Now I know. Thanks.

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