Calculate compound interest rate with periodic payment, given initial and final values, duration, payment amount, interval, and tolerance.

Compound Interest Rate with Periodic Payment

Purpose

The Compound Interest Rate with Periodic Payment calculator function helps you calculate the periodic and annual interest rates when making regular payments towards an investment or loan.

Use Cases

• Planning for investments with regular contributions
• Understanding the impact of periodic payments on loan interest rates

How to Use

1. Enter the required values in the input fields below.
2. Click on the "Calculate" button to see the results.

Input Values

1. Present Value: The initial amount of money invested or borrowed.
2. Future Value: The desired amount of money at the end of the investment period.
3. Duration: The time period for the investment in years.
4. Periodic Payment: The amount of money you contribute regularly.
5. Payment Interval: The frequency of your periodic payments (default unit is month).
6. Payment When: The timing of your payments relative to the compounding period.
7. Starting Guess: An initial estimate of the interest rate.
8. Tolerance: The acceptable margin of error for the calculation.
9. Maximum Iteration: The maximum number of iterations for the calculation.

Output Values

1. Periodic Interest Rate: The interest rate per payment interval.
2. Annual Interest Rate: The equivalent annual interest rate.

Any other Instruction

Make sure to input all values accurately to get correct results.

Steps of Calculation

1. Calculate the number of periods based on the duration and payment interval.
2. Use the provided formula to calculate the interest rate.
3. Convert the interest rate to both periodic and annual rates.

Technical Parameter names

present_value, pv_part, future_value, fv_part, duration, periodic_payment, pp_part, payment_interval, payment_when, starting_guess, tolerance, maximum_iteration

Return Values

Periodic Interest Rate, Annual Interest Rate

Example Expressions

You can use the following expressions to directly evaluate in a non-interactive manner using eva().

eva(cirp(present_value=50000, future_value=100000, duration='3 yr', periodic_payment=1000))
eva(cirp(present_value=200000, future_value=300000, duration='5 yr', periodic_payment=500, payment_interval='yr'))

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