**Accrued Interest** refers to the payable or receivable interest on a loan or bond at a certain period of time. Accrued interest doesn’t compound during the coupon period, so the interest occurs on a daily basis. Multiple formulas can find accrued interest and users can use them to build a calculator. Afterward, the monthly **accrued interest calculator in Excel** can find the accrued interest upon data insertion.

In this article, we demonstrate multiple variants of the monthly accrued interest calculator in Excel.

**Table of Contents**hide

**Download Excel Template**

We kind of designed the Excel worksheets as a **Template** to simply find the monthly accrued interest upon entering the required data.

**Accrued Interest**

As we know, accrued interest is the amount that is payable or receivable but not paid or received yet. For bonds, interest accrues from the time of their issuing. However, the interest gets paid as coupons at regular intervals (i.e., Quarterly, Semi-annually, or Annually). So, for the period, the unpaid accumulated interest is referred to as accrued interest. The fundamental formula of accrued interest is

*Accrued Interest =**Loan Amount*

*or*

*Par Value*

*✖*

*(**Yearly Interest/***✖***365)**Period of Interest Accrued***4 Easy Ways to Make a Monthly Accrued Interest Calculator in Excel**

Users can calculate accrued interest using multiple methods. These methods may be used as different variants of monthly accrued interest calculators in Excel. In this article, we use two approaches to build an interest calculator: **Daily Accrued Interest** and **Annual Accrued Interest**. A simple division (by **12**) of annual accrued interest results in monthly accrued interest.

Go through the following section to find calculator variants for monthly accrued interest.

**1. Applying Accrued Interest Formula**

From the accrued interest formula, users need the **Loan Amount**, **Annual Interest Rate,** and **Accrued Interest Period** to find the accrued interest amount.

*Accrued Interest =**Loan Amount*

*or*

*Par Value*

*✖*

*(**Yearly Interest/***✖***365)**Period of Interest Accrued*- Type the below formula into any cell.

`=PRODUCT(C3,C7,C9)`

**Formula Breakdown**

**Loan Amount or Par Value**=**C3****Yearly Interest**=**C7****Period of Interest Accrued**=**C9**

- Press
**ENTER**to find the monthly accrued interest on bonds or loans.

**Read More: How to Calculate Accrued Interest on a Loan in Excel (3 ways)**

**2. Using ACCRINT Function**

**The ACCRINT function** returns the accrued interest of a loan or bond that pays interest periodically. The syntax of the function is

`=ACCRINT(issue, first_interest, settlement, rate, par, frequency, [basis], [calc_method])`

**The Arguments **

* Issue:* This is the date when a loan or bond is issued.

* First_interest:* This argument means the date when the interest payment will first occur.

* Settlement:* The date when the loan will be finished.

* Rate: *Annual or Yearly Interest rate.

* Par: *The loan amount.

* Frequency:* This is the annual number of loan payments.

**1**for

**Annual**payments,

**2**for

**Semi-annual**payments, and

**4**for

**Quarterly**payments.

* Basis: *The basis is set to 0 if the argument is omitted. [

**Optional**]

* Calculation_method: *It’s either 0 or 1 (calculates accrued interest from

**First_interest**date to

**Settlement**date). [

**Optional**]

- Write the below formula in a blank cell.

`=ACCRINT(C3,C5,C7,C9,C11,C13,C15,C17)/12`

- Hit
**ENTER**to display the accrued interest as shown below.

**Read More: How to Calculate Accrued Interest on a Bond in Excel (5 Methods)**

**3. Counting Days Using DAYS360 Function **

**The DAYS360 function** gives the number of days between two dates. The syntax of the function is,

`Days360(start_date,end_date,[method])`

Multiplying the functional outcome with **Daily Interest Rate** and **Par Value** will result in monthly accrued interest. Make sure the difference between the two dates is one (1) month.

- Type the latter formula to find the accrued interest.

`=DAYS360(C5,C7,FALSE)*C9*C13`

- Use the
**ENTER**key to display the amount.

**4. Finding Year Fraction by YEARFRAC Function **

Excel’s **YEARFRAC function** calculates the fraction of days to the year. The syntax of the function is,

`YearFrac(start_date, end_date, [basis])`

Users need to multiply the returned value with **365**, **Par Value**, and **Annual Rate** to display the accrued interest. And for monthly accrued interest, the two dates must be one month apart.

- Place the below formula in a cell.

`=YEARFRAC(C5,C7,0)*365*C9*C13`

- Tab on the
**ENTER**key to display the accrued interest outcome.

**Cross-checking the Accrued Interest Value**

You see, we get two different values of monthly accrued interest. That’s before we used two different approaches. They are:

**a. Daily Interest Rate**

It takes the annual interest rate and divides it by **365**. So, the **Annual Interest Rate** becomes the **Daily Interest Rate**. Multiplying the returned days with **Par Value**, **Daily Interest Rate** and **30 **(days in a month) result in the monthly accrued interest.

**b. Annual Interest Rate**

In this case, the **ACCRINT** formula calculates the annual accrued interest and, by dividing it by **12**, gives the monthly accrued interest.

**Conclusion**

This article demonstrates multiple variants of the monthly accrued interest calculator in Excel. We hope this article sheds enough light to satisfy your cravings. You can use the attached workbook as a **Template** to conduct show operations.

Do check out our awesome website,** Exceldemy**, to find interesting articles on Excel.