Compounding frequencies

FinKit allows you to choose from a wide range of compounding and payment frequencies.

The following table shows you what each of the choices means:

Item	Notation	What it means

Never	j0	Not compounded at all. Used only for compounding frequency when calculating simple interest.

Annually	j1	Once a year or every year.
Semiannually	j2	Twice a year or every six months.
Quarterly	j4	Four times a year or every three months or every quarter.
Bimonthly	j6	Six times a year, every two months.
Monthly	j12	Twelve times a year, every month.
Semimonthly	j24	Twenty four times a year, half-monthly, twice a month.
Biweekly	j26	Twenty six times a year, every two weeks.
Weekly	j52	Fifty two times a year, every week.
Daily (360)	j360	Every day, using the approximate day count method which assumes each month to have 30 days and each year to have 360 days.
Daily (365)	j365	Every day, using the exact day count method.

Continuously	j	Used only for compounding frequency. It indicates continuous compounding, i.e. compounding with intervals approaching zero.

Note: For payment frequencies the exact (or actual/actual) day count method is used.

Related topics

Simple interest