Object representing compounding interest calculations.

Hierarchy

  • CompoundingInterestObjectType

Properties

balance: number

Balance amount.

totalContributions: number

Total contributions made.

totalInterestEarned: number

Total interest earned.

years: number

Number of years.

contributionFrequency: number

Contribution frequency.

compoundingFrequency: number

Compounding frequency.

compoundingPeriodDetails: CompoundingPeriodDetailsType[]

Compounding period details.

averageAnnualInterestRate: number

Time-weighted annual return (TWR) — the strategy's investment performance, independent of contribution timing.

Calculated as the annualized geometric mean of the period-by-period returns: (product of (1 + r_i))^(periodsPerYear / n) - 1.

For constant-rate strategies this reduces to the effective annual yield (EAR). For glidepath strategies this is the time-weighted average of the path of returns.

This is the metric to compare against benchmarks (e.g., the S&P 500 return over the same window). At a constant rate the money-weighted return is the same number, so it is not reported separately.

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