Below, we have a dataset that contains the **Principal Amount**, **Interest Rate (Daily)**, and **Time (Days)**.

### Method 1 – Using a Generic Formula to Calculate Daily Simple Interest in Excel

**Steps:**

- Select the cell in which you want to calculate the
**Final Amount**. Here, I selected cell**C9**. - Enter the following formula in cell
**C9:**

`=C5*(1+C6*C7)`

Here, I **multiplied** the **Interest Rate (Daily)** by **Time (Days) **and summed it with **1.** I** multiplied** this whole value by the** Principal Amount** to get the **Final Amount**.

- Press
**ENTER,**and you will get the**Final Amount**.

- Select the cell where you want to calculate the
**Daily Interest**. Here, I selected cell**C10**. - Enter the following formula in cell
**C10**:

`=C9-C5`

Here, I** subtracted** the **Principal Amount **from the **Final Amount** to get the **Daily Interest**.

- Press
**ENTER,**and you will get the**Daily Interest**.

**Read More:** Convert Compound Interest to Simple Interest in Excel

### Method 2 – Using the IPMT Function to Calculate Daily Simple Interest in Excel

**Steps:**

- Select the cell where you want to calculate the
**Daily Interest**. Here, I selected cell**C9**. - Enter the following formula in cell
**C9**:

`=IPMT(C6,1,1,-C5)`

Here, in the IPMT function, I used C6 as rate, 1 as per because I am calculating interest per day, 1 as per because I want to see the return after 1 day, and I selected -C5 as pv, which is our present value. Now, this formula will return you the value for **Daily Interest**.

- Press
**ENTER,**and you will get your**Daily Interest**.

To calculate the **Final Amount,**

- Select the cell in which you want to calculate the
**Final Amount**. Here, I selected cell**C10**. - Enter the following formula in cell
**C10**:

`=C5+C9`

Here, I summed the **Daily Interest **with the **Principal Amount** to get the **Final Amount**.

- Press
**ENTER,**and you will get your**Final Amount**.

### Method 3 – Using the FV Function to Calculate Daily Simple Interest in Excel

**Steps:**

- Select the cell where you want to calculate your
**Final Amount**. Here, I selected cell**C9**. - Enter the following formula in cell
**C9**:

`=FV(C6,1,,-C5)`

Here, in the FV function, I selected **C6** as rate and 1 as **nper** because I am calculating on a daily basis. For **PMT**, I left it blank(,,) because we are not making any regular payments, and for **PV**, I selected **C5**, which is our present value. Now, this formula will return the value for the Final Amount.

- Press
**ENTER,**and you will get the**Final Amount**.

- Select the cell where you want to calculate the
**Daily Interest**. Here, I selected cell**C10.** - Enter the following formula in cell
**C10:**

`=C9-C5`

Here, I** subtracted** the **Principal Amount **from the **Final Amount** to get the **Daily Interest**.

- Press
**ENTER,**and you will get your**Daily Interest**.

**Read More: **How to Calculate Simple Interest Loan Payments in Excel

## How to Calculate Daily Compound Interest in Excel

Compound interest is calculated on the initial principal amount and the earned interest from the previous period.

The formula for calculating the **Final Amount **for compound interest is,

**Final Amount = P*(1+r/n)^nt**

Where,

**P = Principal Amount
**

**r = Interest Rate (Annually)**

**n = Compounding Periods (Per Year)**

**t = Time**

Here, I will use this generic formula to calculate **daily compound interest **in Excel.

For example, you have **$10,000** as your** Principal Amount**. Your yearly **Interest Rate** is **5.00%, and the Compounding Period per year is 1. **I will show you how to calculate the **Final Amount** after 1 year and the Interest you will earn. From that interest, I will calculate the **Daily Interest** for the first year.

**Steps:**

- Select the cell in which you want to calculate the
**Final Amount.**Here, I selected cell**C10**. - Enter the following formula in cell
**C10:**

`=C5*(1+C6/C7)^(C7*C8)`

Here, I **divided **the **Interest Rate **by the **Compounding Periods **and then **summed **this part with **1**. Then, I** raised **this whole part to the power of **Compounding Periods multiplied **by **Time**. Finally, I **multiplied **this whole part by the **Principal Amount **to get the **Final Amount**.

- Press
**ENTER**to get the**Final Amount**.

To calculate the **Interest (Earned in 1st Year),**

- Select the cell where you want to calculate the
**Interest (Earned in 1st Year)**. Here, I selected cell**C11**. - Enter the following formula in cell
**C11**:

`=C10-C5`

Here, I **subtracted **the **Principal Amount **from the **Final Amount** to get the **Interest (Earned in 1st Year)**.

- Press
**ENTER**to get the**Interest (Earned in 1st Year)**.

To calculate the **Daily Interest (For the 1st Year) **from the I**nterest (Earned in 1st Year),**

- Select the cell in which you want to calculate the
**Daily Interest (For the 1st Year)**. Here, I selected cell**C12**. - Enter the following formula in cell
**C12**:

`=C11/365`

Here, I divided the **Interest (Earned in 1st Year) **by **365 **to get the **Daily Interest (For the 1st Year)**. **365 **is the number of days in a year.

- Press
**ENTER**to get the**Daily Interest (For the 1st Year)**.

## Things to Remember

- It should be noted that in
**simple interest,**the interest earned is calculated on the**principal amount**. - Meanwhile, compound interest calculates the interest based on the
**principal amount**and the**interest earned**from the**previous period**.

## Practice Section

Here is a practice sheet. Practice the different methods on how to calculate **daily simple interest** in Excel.

**Download the Practice Workbook**

**Related Articles**

- How to Calculate Simple Interest and Compound Interest in Excel
- How to Calculate Simple Interest on Reducing Balance in Excel

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