How compounding rolls forward
Simple interest pays on the principal only; compound interest folds each period's return back into the principal — interest on interest.
At 1% a day the principal is multiplied by 1.01 each period, so after 365 periods it is 1.01 to the power of 365 — not "1% × 365 = 365%".
Formulas
previous balance × (1 + rate per period)principal × (1 + rate per period)^periodsfinal value − principalWorked example (recompute it yourself)
Principal 100 USDT, 1% a day:
30 periods → 100 × 1.01^30 ≈ 134.78 USDT; 90 periods → about 244.86 USDT; 180 periods → about 599.58 USDT.
365 periods → 100 × 1.01^365 ≈ 3,778.34 USDT, a factor of about 37.78x and a total gain of about 3,678.34 USDT.
For contrast, treating 1% × 365 as simple interest gives only 465 USDT.
Risk notice (please read)
This is a mathematical simulation. It is not actual investment performance, and no strategy is promised to sustain any given periodic return.
Real results are affected by price volatility, fees, slippage, funding rates and liquidity — and the principal can lose value.
Figures like "1% a day" are calculator inputs, not achievable or sustainable return promises.
FAQ
Does 1% a day for a year really make 37x?
No. 1.01^365 ≈ 37.78 is a math result that assumes 1% every single day, which is not sustainable in practice.
How should I pick the compounding frequency?
Match the rate to the frequency: a daily rate with daily compounding, a monthly rate with monthly. Mixing them inflates the result.