I had 189,349.16 in my bank and my bank gives profit every month. I got 356.68 Rs profit this month. How do I calculate percentage of interest on this money?

  • 1
    This looks to be for Pakistan. Do you know how Banks in Pakistan compute the interest, i.e. do they take the daily balance, or take the lowest balance from 10th of Month to 25th of Month and use an average balance to calculate? The Amount 189,349.16 was this for full month? Is this month with 30 days or 31 days. – Dheer Aug 3 '16 at 12:35

First, calculate your monthly interest rate. You do this by finding the percentage of your total amount the interest was:

  • 356.68 / 189,349.16 = 0.188%

Over the course of the year, you will receive 0.188% every month (assuming the same interest rate the entire year). You can calculate how this is for the entire year by doing:

  • (1 + 0.00188) ^ 12 = 1.022

This means your interest rate is about 2.2% over the entire year.

  • 2
    Note this is not including any unusual methods to calculate the interest. – enderland Aug 3 '16 at 12:43

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