# Compound Interest Rate Calculator

After entering the required information in the calculator below, click the calculate button.

Below this page, you can also find the answers for frequently asked questions about this subject.

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## What is simple interest?

It is the rate of profit earned by the principal only during the investment period.

## What is compound interest?

It is the rate that shows the return obtained as a result of the reinvestment of the profit earned by the principal during the investment period by adding to the principal. In other words, it is the return on profit.

## How is the compound interest rate calculated?

It is calculated by the following formula.

[(Simple interest rate x number of days / 36500 + 1) ^{ 365 / number of days } - 1] x 100

Example:

13 December 2020 term bond

Today: 1 March 2020

Days to Maturity: 287 days

Simple Interest Rate: 70.40%

Compound Interest Rate = [(70.40 x 287 / 36500 + 1)^{365 / 287} - 1] x 100 = 75.12