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Interest Calculation

Calculation of simple interest, compound interest and the highest interest rate applied to deposits (actual). Monthly breakdown and Excel output.

Interest Calculator

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TL
%

Interest Calculation Result

Principal ₺0,00
Total Interest ₺0,00
Period 0 days
Total (Principal + Interest) ₺0,00

This is a preliminary calculation. For the calculation of damage exceeding default interest, see the Additional Damages module.

Note: This calculator uses the simple interest (F = A × r × t / 365) and compound interest (F = A × [(1 + r)^t − 1]) formulas. With the highest interest rate applied to deposits (actual) option, the period is divided into calendar months; to each month the maximum interest rate actually applied by banks to TL deposits, as published by TCMB for that month, is applied (simple interest, days/365). Rates are updated monthly from TCMB EVDS. For special cases such as the statutory interest rate and default interest, you can review the additional damages module of Tazminat.com.

How is interest calculated?

Interest is calculated from the principal, the annual interest rate and the number of days for which interest accrues. The tool offers three methods:

  • Simple interest: Interest = Principal × Annual rate × Days ÷ 365. Interest accrues only on the principal.
  • Compound interest: Interest = Principal × [(1 + Rate)t − 1]. The interest of each period is added to the principal and bears interest in the next period.
  • Highest interest rate applied to deposits (actual): The period is divided into calendar months; to each month the highest rate actually applied by banks to TL deposits with a maturity of 1 year or longer, as published by TCMB for that month, is applied.

Sample calculation

If annual simple interest of %24 runs on a principal of 100.000 TL for 180 days, the interest is 100.000 × 0,24 × 180 ÷ 365 = 11.835,62 TL and the total claim is 111.835,62 TL. (The rate is for illustration.)

Which interest applies to which claim?

If no other interest is provided for by law or contract, Law No. 3095 on Statutory Interest and Default Interest applies: statutory interest in ordinary matters, and commercial (advance) interest tied to the TCMB short-term advance rate in commercial matters. For late payment of severance pay, Art. 14/11 of Labor Law No. 1475, and for late payment of wages, Art. 34 of Labor Law No. 4857, provide for the highest interest rate applied to deposits. For damage exceeding default interest, additional damages (TCO Art. 122) may also be claimed.

Frequently asked questions

What is the difference between simple and compound interest?

With simple interest, interest accrues only on the principal. With compound interest, the interest arising in each period is added to the principal and interest runs on this total in later periods; compound interest therefore comes out noticeably higher over long periods.

Which interest applies to severance pay?

In the event of delay in paying severance pay, the highest interest rate applied to deposits is paid for the period of delay under Art. 14/11 of Labor Law No. 1475. The "Highest Interest Rate Applied to Deposits (Actual)" option in the tool is for this calculation.

Can interest on interest (compound interest) be claimed?

In ordinary matters, it cannot, as a rule, be agreed that interest is added to the principal and itself bears interest (TCO Art. 388/3). In commercial matters, compound interest is possible within the framework of TTK Art. 8.

How many days are taken as a year in the interest calculation?

For simple interest, the tool takes a year as 365 days and runs interest on a daily basis. With the deposit interest option, each calendar month is calculated separately with its own number of days and that month's rate.

Last updated: · This page provides general information; it does not replace legal advice.