Calculating Compound Interest
This API calculates compound interest over multiple years.
HTTP POST Form Example
HTTP GET URL Example:
Copy and paste this URL into a browser window.
Call API - appreciation intrest rate
Sample Result
The API returns a dictionary of key-values, where key is the year and value is a dollar value accumulated.
{
"1": 12368.6,
"2": 25576.05,
"3": 39679.24,
"4": 54738.93,
"5": 70819.98,
...
"30": 1123531.8
}
Parameters
https://us-east1-aiapi-225619.cloudfunctions.net/financial_compound_interest
Principal
float (e.g. 123.01)
This is the amount you start the calculation with, for example amount already invested.
?principal=0
yearly_contribution
float (e.g. 123.01)
This is a total you are planning to invest every subsequent year.
&yearly_contribution=12000
contributions_per_year
Int (e.g. 12, 4, 1, default is 12)
This is how often in a year you will contribute.
-
12 for every month (at the end of the month)
-
4 for quarterly (at the end of the quarter)
- 1 for once a year (at the end of the year)
&contributions_per_year=12
annual_interest_rate
float (e.g. default 9.8)
The annual interest rate, the 9.8% is a default as this is average rate of stock market S&P500.
&annual_interest_rate=9.8
yearly_inflation
float (e.g. default 3.22)
The annual inflation in your country, in USA it is on average 3.22% per year. Which means whatever interest rate you made, you have to take out 3.22% to receive comparable dollar amount.
&yearly_inflation=3.22
years
Int (e.g. 5, 10, 20, 30, default is 20)
Amount of years you will want to accumulate your interests.
&years=30
Depreciation Example
You can also calculate how long can you spend your millions.
Call API - depreciation example
In this example you start with $1,000,000
and take out $100,000 every year.
The calculation shows you will run out of money after 16 years.
{
"1": 964749.5,
"2": 927108.27,
"3": 886914.17,
...
"16": 34585.88,
"17": -66140.1,
}