> For the complete documentation index, see [llms.txt](https://docs.vera.financial/developers/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.vera.financial/developers/getting-started/interest-calculation.md).

# Interest Calculation

Vera uses a **daily** compounding interest rate mechanism based on binomial expansion.

* k = Amount
* N = Total days
* q = 365 \* 100 / interest rate

$$
k \* (1+1/q) ^ N
$$

For more [info](https://ethereum.stackexchange.com/a/10432).