this post was submitted on 09 Sep 2023
8 points (100.0% liked)
Personal Finance
3802 readers
1 users here now
Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!
Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
If I were doing this, I would get an average balance for the month (start of month balance + end of month balance divided by 2) and multiply by monthly interest rate (interest rate divided by 12). I would add that interest payment to the end of month balance and that would become the next months starting balance. My spreadsheet columns might look like this:
Beginning Balance formula would be =sum(Ending Balance, Interest Earned) from the previous line
Deposits and Withdrawals would be numerical entries
Ending Balance formula is =Beginner Balance + Deposits - Withdrawals
Interest formula is =average(Beginning Balance, Ending Balance) * rate / 12