Compound Interest Calculator For Crypto Arbitrage
| № | Initial capital | Operation | Final capital | Profit | Volume |
|---|---|---|---|---|---|
| 1 | 10,000.00 USD | +1.00% | 10,100.00 USD | +100.00 USD | 10,100.00 USD |
| 2 | 10,100.00 USD | +1.00% | 10,201.00 USD | +101.00 USD | 20,301.00 USD |
| 3 | 10,201.00 USD | +1.00% | 10,303.01 USD | +102.01 USD | 30,604.01 USD |
| 4 | 10,303.01 USD | +1.00% | 10,406.04 USD | +103.03 USD | 41,010.05 USD |
| 5 | 10,406.04 USD | +1.00% | 10,510.10 USD | +104.06 USD | 51,520.15 USD |
| 6 | 10,510.10 USD | +1.00% | 10,615.20 USD | +105.10 USD | 62,135.35 USD |
| 7 | 10,615.20 USD | +1.00% | 10,721.35 USD | +106.15 USD | 72,856.71 USD |
| Total: | +721.35 USD |
Summary:
| With reinvestment | |
| Initial capital: | 10 000.00 USD |
| Final capital: | 10 721.35 USD |
| Profit: | +721.35 USD |
| %, Profit: | +7.21% |
| Volume: | 72 856.71 USD |
| Deals count: | 7 |
| Single spread: | 1.00% |
On this page you can calculate compound interest. The calculator is specially designed for crypto traders who want to calculate their income through compound interest.
What is compound interest and reinvestment?Compound interest is the calculation of interest on the interest that was received for the previous period. Typically the term is used in investing and anywhere numbers or money are used.
In crypto arbitrage, the term “compound interest” is also used, and it can be replaced with the word “Reinvestment”. When an arbitrageur does not withdraw profits, but uses the accumulated funds to increase volume and profit, this is called reinvestment.
Let's look at an example of why compound interest (reinvestment) is profitable:For example, an arbitrageur’s initial capital is $1000. His task is to trade for a year and receive only 1% per day. In crypto arbitrage, it is possible to earn 1% in 1 transaction, which can take 5-15 minutes.
1% of $1000 is $10. There are 365 days in a year and the arbitrageur makes only 1 trade per day, we get the following results:
If profits are withdrawn daily, then earnings are +3,650 $ for 1 year.
But if the profit is reinvested daily, then the profit will be +36,783 $ for 1 year.
We see that the difference is more than 10 times between “withdrawal of profits” and “compound interest.”