The immense power of compounding can change a lot depending on how frequently it happens. While the difference in small amounts and time frames can be negligible, the difference becomes even more glaring over longer periods.

This template can help you in calculating the effective rate of a loan or investment on annualized basis, based on the frequency of compounding (semi-annual, quarterly, monthly, daily or continuous). Even though the nominal rate is the same across different frequency options, the effective rate determines the actual amount you can expect to pay or receive. The template also includes a line chart on the bottom which can help you visualize the difference between your options.

To use the template, all you need to do is to enter the nominal rate into the first cell in the effective rate table. Note that the entire worksheet is locked for ease of use. If you want to make changes in the template, right click the name of the worksheet (EAR) on the menu, and click Unprotect Sheet.

Feel free to download the template by pressing the button below!

How to Turn Excel Templates into Web Applications

You can turn this or any Excel file into a web application with SpreadsheetWeb. Delivering it as a web application helps protect your data and business logic. Your users can still access parts of your file, enter data and see the calculation results. But they won't be able to see the actual formulas nor modify them. Delivering your Excel file as a web application will allow many users accessing it at the same time while protecting their data. They cannot see each others data. Their data is fully protected.

The web application created from this Excel template is below: