**Excel** is an obvious tool for our day-to-day activities. We can largely bank on **Excel** for a myriad of purposes that involve calculations. For instance, **Excel** can show us how to calculate **accrued interest** on a **fixed deposit** within a specific timeframe. In this article, I am going to show you how to calculate **accrued interest** on **fixed deposit** in **Excel**. I will use three different ways to explain the cases.

**Table of Contents**hide

## Download Workbook

This is the dataset that I am going to use to explain how to calculate accrued interest on fixed deposit in Excel. In case of calculating the accrued interest manually, we have taken**Fixed Deposit (P)**,

**Annual Rate (r)**,

**Interest accrued per Year (n)**and

**Years elapsed (t)**.

I will also show you how to calculate **accrued interest **on **fixed deposit **using **ACCRINT **function and for this I have taken the **Date of Deposition**, **First Interest Date**, **Settlement Date**, **Annual Interest Rate**, **Par value**, **Frequency/Payment Mode**, **Basis Days, **and **Calculation Method**.

I will explain these terminologies in the upcoming sections.

## Accrued Interest

The **accrued interest** is the interest that has accrued on a liability (such as loan) or other financial obligation but yet to be paid.

Accrued Interest can be of two types.

â‡’ **Simple Interest**â‡’

**Compound Interest**

We will describe these types shortly in the following sections.

## 3 Methods on How to Calculate Accrued Interest on Fixed Deposit in Excel

### 1. How to Calculate Accrued Interest on Fixed Deposit in Excel Manually

#### 1.1. Simple Interest

Calculating accrued interest using **simple interest **is easy. The formula to calculate the **simple interest **is

`I = P*t*r`

**P**= Amount of Fixed Deposition

**t**= Years Elapsed

**r**= Annual Interest Rate.

In our

**dataset**, we have set all these parameters. To calculate

**simple interest**from this dataset,

First, select

**cell C5**. Then write down the formula,

`=C2*C3*C4`

Then press **ENTER**. **Excel **will return the **simple interest**.

Here, I have multiplied **Fixed Deposit (P)**, **Annual Rate (r)** and **Years elapsed (t)** to calculate the **Interest Amount**. The amount is **$1400.00**.

#### 1.2. Compound Interest

Now I will discuss how to calculate **accrued interest** on **fixed deposit **in **Excel **using the **compound interest **formula. The formula is given below,

`I=P(1+r/n)^(n*t)-P`

**P**= The deposit amount

**r**= Annual interest rate

**n**= number of times interest accrued per time period.

â†’ If interest is accrued annually, n=1

â‡’ If interest is accrued semiannually, n=2

â‡’ If interest is accrued monthly, n=12

â†’ If interest is accrued daily, n=365

**t**= number of time periods elapsed

In our dataset,

*and*

__we have taken the time period as__**one year***. So,*

__interest is being accrued semiannually__**n=2**in our case.

Now, to calculate the

**interest amount**,

First, select

**cell C6**. Then write down the following formula

`=C2*(1+C3/C4)^(C4*C5)-C2`

Then press **ENTER**. **Excel **will return you the **compound interest**.

Here, I have put the **Fixed Deposit (P)**,** Annual Rate (r)**, **Interest accrued per year (n)** and **Years elapsed (t)** in the **compound interest formula **and the output is **$1,584.05**.**Note:** Notice that, __compound interest is greater than simple interest__. **Thatâ€™s because of the compounding factor**. In **compound interest**, *we calculate interest considering the compounding of deposit every time*.

**Read more:** **How to Calculate Accrued Interest on a Loan in Excel**

### 2. Calculating Accrued Interest on Fixed Deposit in Excel using ACCRINT Function

In this section, we are going to use the **ACCRINT** function and understand how to calculate **accrued interest **on **fixed deposit **in **Excel**. To use **ACCRINT** function,

First, select** C11**. Then write down the formula,

`=ACCRINT(C2,C3,C4,C5,C6,C7,C8,C9)`

**Date of Deposition**: It refers to the date when you deposited the money. In our case it is

**1st January 2022**and it is in

**cell**

**C2**.

**First Interest Date**: It indicates the date when the first interest will be accrued. In our case it is

**1st January 2023**and it is in

**cell**

**C3**.

**Settlement Date**: This is the date when one will withdraw the deposit, that is, the time will

end. It is

**1st January**

**2024**and in

**cell**

**C4**.

**Annual Interest Rate**: This is the interest rate on

**annual basis**. It is

**7%**.

**Par Value**: The amount of money that you have deposited. For our case,

**$5000**is the amount and it is in

**cell**

**C6**.

**Frequency/Payment Mode**: This refers to the number of times interest is accrued per year. Since

**in our case, the value is**

*interest is accrued annually***1**and in

**cell C7**.

**Basis Days**: This is an optional argument. This is the day count that we use to calculate interest. If we omit the argument, the base is set to

**0**. We have taken it as

**0**.

**0- US (NASD 30/360)**

**1- Actual/Actual**

**2- Actual/360**

**3- Actual/365**

**4- European 30/360**

**Calculation Method:**This is also an optional argument. When the date of settlement is later than the date of first interest, this logical value indicates how to calculate the total accrued interest. I have put the value

**0**in

**cell C9**as

*.*

__I want the accrued interest from first interest to settlement__Now press **ENTER**. **Excel** will calculate the **interest amount**. And it will be **$700.00**.

**Read more:** **How to Calculate Accrued Interest on a Bond in Excel**

**Similar Readings**

**How to Calculate Monthly Interest Rate in Excel (3 Simple Methods)****Calculate Interest on a Loan in Excel (5 Methods)****Simple Interest Formula in Excel (With 3 Practical Examples)****How to Calculate Interest Rate on a Loan in Excel (2 Criteria)**

### 3. Calculating Accrued Interest on Fixed Deposit in Excel using ACCRINT Function and DATE Function

Now, I am going to show you that you can also calculate **accrued interest **if you do not have the **Date of Deposition**, **First Interest Date**, and **Settlement Date**. In that case, you just have to use the **DATE** function.* In this method, you will not have the dates in the dataset*. To apply this method,

First, select

**C8**. Then write down the following formula,

`=ACCRINT(DATE(2022,1,1),DATE(2023,1,1),DATE(2024,1,1),C3,C2,1,0,1)`

**DATE**function.

Then press **ENTER**. **Excel **will return the **accrued interest **for the period of **1st January 2022 **to **1st January 2024**.

Here, **Excel** calculates the ** Accrued Interest** as

**$700.00**for a

**Par Value**of

**$5000.00**. The

**Frequency/Payment Mode**is

**1**, that is,

**.**

__interest will be accrued annually__**Read more:** **How to Calculate Interest Between Two Dates Excel**

## Practice Workbook

**Excel **has made it easier for us to calculate **accrued interest **on a **fixed deposit**. Though it is easy, it needs practice. Thatâ€™s why I have attached practice sheets for you so that you can internalize the methods that you find easy and useful.

This one is for calculating **accrued interest **using a **compound formula**.

This one is for the **ACCRINT **function.

## Conclusion

In this article, I have shown some of the easiest ways on how to calculate **accrued interest **on **fixed deposit **in **Excel**. I hope these methods will come out in handy to you. Lastly, if you have any remarks or suggestions, please leave them in the comment box.**Excel** with us.

sir, i have deposit 21,00,00,000 on 04-04-2022 with rate of interest 6.30%,interest mode is quarterly,i had received 3 quarterly interest amount(last interest date 04-01-2023),i want to sum accrued interest for 31-03-2023 how to arrive in excel sir ,(ans is 3810483.87112)please help me sir ([email protected])