# How is interest calculated?

**Sommaire de notre article**

### How is interest calculated?

**The formula used for the calculation of the interests simple**

- Amount of capital (€) * Rate of
**interest**annual (%) * Valuation time =**Interest**(€). - €10,000 * 1.75% * 12/€. It represents your
**interests**during the first year. … - €10,000 * 1.75% * 12/€. …
- €175 * 1.75% * 12/12 = €3.

### How is monthly interest calculated?

The calculations required: the rate **monthly** = the bank’s annual rate divided by 12; them **interests** = the capital remaining due to the bank x the rate **monthly** ; the repaid capital = The constant monthly payment – the **interests** ; the capital remaining due = The capital remaining due from the previous month – the capital repaid.

### When does the bank pay the interest?

On the 1st and 16th – the value dates – of each month, the **interests** are calculated. It is therefore recommended to make payments on the 15th or 30th of the month and withdrawals on the 1st or 16th of the month. At the end of each year, on December 31, the **interests** of the year are added to the capital.

### How to calculate compound interest?

To calculate compound interest, one must take into account the accumulation of interest year after year. Let’s do the calculation for a booklet that brings in 1% per year (calculation made without taking into account income tax or social security contributions) with a starting capital of 1,000 euros.

### How to calculate the interests of a booklet?

For example, in the case of a Livret Jeune, that of BNP Paribas (one of the most successful with a rate of return of 2% per year currently) the calculation of simple interest would be as follows: – Initial payment: 1,000 euros in the account on January 1, 2018. – No deposits during the year. – Investment at the rate of 2% for one year.

### What are the interest rate calculation parameters?

For the main savings accounts used in France, the parameters for calculating the interest rate are as follows: Livret A, LDDS (ex-LDD), LEP: regulated rate, subject to variations, calculation of interest per fortnight and net social contributions

### How to calculate bank interest?

– Investment at the rate of 2% for one year. After one year, accrued bank interest and loans as of December 31, 2018 amount to 20 euros. > Calculation formula: 1,000 x 2/100 = 20. The value of the capital thus amounts to 1,020 euros on January 1, 2019.