How to Calculate Income

Updated: 09/30/2005 16:39
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calculate income
Learn how to calculate income from HYIP investing. See how to regulate income opportunities and achieve faster result benefiting from HYIP investing.
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Every material of ours is aimed at teaching the newbies and offer professionals to regulate their opportunities, potential and facilities in a way for their mobilization and achieving more valuable, faster result.

That's actually why the section about investors' "documents" appeared. That's why this particular material appeared to tell you how to make calculations of your income, how to make it better and why actually it is necessary.

Typing the word-combination "investment calculator" or "profit calculator" in the search engine request field, you will be offered about a hundred of free specialized calculators that can calculate your profit perfectly well. We will pay attention to them, though first some theory should be mentioned.

First of all, the principle of the calculation itself is quite simple. And does not deserve to be described in the whole article. Actually it doesn't if speaking about simple summation. And it wouldn't worth if investors didn't do mistakes using this simple function.

As you understand it is fraught with disappointment, and even plans frustration. That's why every time when you calculate your future benefit, you should be first of all 100% right concerning the calculations.

So, the basics. The calculation formula is very simple. Your deposit * (1 + profit rate)term = your total income (with or without the principal investment (if you wish to get pure profit, hence you need just to minus the variable Your deposit from the amount resulted).

And the first thing where investors make mistakes is a term. To make the calculation right, you should type in "not just the term of your deposit", you should write down the term of your deposit, which is divisible to your interest.

Let us put it simpler. If you invest for 10 days, and your interest = 5% FOR 10 days (in accordance with the terms of a program), then if you type in the number of days, I mean 10, you will get the mistake, because the formula calculates the "units'" number as a term. I.e. the number of times, you should sum up money to your deposit.

Better to say, it's a simple multiplication by the number of adding the interest to your deposit. It's the simplest formula, and at the same time it's the one that calculates compounding deposits. As you can see the amount is not taken from you account it remains there and the interest rate is calculated every time from the remainder on your account.

If you make these calculations in series, without the formula you may have the mistake, if you don't sum up the interest received to the deposit and deduct another interest from it every time. So, here is what happening on your account. :)

If you wish to get the amount of your income, no compounding included, you will have just to remove the variable "term" and divide the amount by 100. All this is realized up to a point you get the "hundredth" interests.

You can also put the division in brackets. So, our formula looks like that: Your deposit * (profit rate * term/100) = your total income. That is all.

These two formulas will always be the first reason for the profit calculation. Though, then as you grasp new investment summits, you will certainly have not just to use more complex formulas, you will also resort to the help of the worked out ones.

Concerning the formulas' simplification it's important here not just to sum up the deposits received, and possibly to calculate the total interest number you get from each of your programs. However, it is only actual if you make the same deposits in all the variants.

The "risk degree" is also good to be included in the formula. Of course it will not sound mathematically, but you can divide the interest you get (profit interest in the formula) by the unit, you give to the program as the "confidence level" If you are penetrating enough, in the upshot you will be able to see also the amount of the incomes received if any of your programs collapsed from your calculations.

And, hence, you will understand that from your income amount the one with the least confidence level is deducted.

If you use the existing calculators, you know they will hardly astonish you. For instance, Hyip Navigator offers rather simple calculator that calculates on a simple form, though having one peculiar feature about it. And by your request you can calculate any value in the formula.

So, if you wish to get the certain profit, you may calculate the term or the interest needed. It is done with the help of the "reverse" formula. Which is actually formed in accordance with the mathematic rules. It is a good function, though we don't recommend you as investors using such calculations as the guide to action.

If you calculate the term needed or the interest, searching for a program for you, you can lose, without taking a look at other characteristics, not paying attention to its quality.

There are many programs that offer calculators by themselves, which can be used before completing investment. You should be warned that programs can be not honest in their calculations, though I don't believe it, cause anyone can check the work of such a calculator, catching the scammers immediately. So, this kind of practice hasn't been used until now. By the way, significant add-ons, which can satisfy everyone, can be discovered in such programs. :)

But, not the HYIP investors. Such things as stock value, transaction value and other stuff - is not for us. However, important features concerning the calculations of the funds transfer cost, administrative fees and others are certainly going to make your calculations more accurate.

Besides, in the calculators like that you can save your results, establishing a file of programs and calculations for them. Making standard patterns and calculation formulas are also possible.

And finally. Always be pure mathematicians and pragmaticians. If you make calculations yourself, you should necessarily check the results. Your success possibly depends on that and you shouldn't be the hostage of your emotions and if you can't - you'd better ask somebody or make a file with standard Excel formulas. :) Good luck.


About the author

Brett Sherpan has been working for seven years writing and editing for online and print media. He has held various editing and copywriting positions and can quickly and competently write copy for sales, marketing and editorial content. Brett is a consistently dependable team player, who thrives in a high-pressure environment, enjoying the challenges of meeting deadlines and am comfortable researching, writing and editing on a wide range of topics
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