EDI Daily Compounding Educational Calculator

Understanding daily compounding

Compounding describes what happens mathematically when an amount calculated during one period is retained and included in the balance used for the next period.

For example, if a hypothetical daily amount is fully retained, the next calculation uses the updated balance — not only the original starting balance. This causes each later calculation to build upon the earlier mathematical results.

CGG-EDI uses this concept strictly for education and planning. A calculated amount is not bank interest, earned income, an investment return, or proof that a trading result can be achieved.

Trading results do not occur at a fixed rate. Results may be positive, negative, or unchanged. Losses, spreads, slippage, financing charges, fees, and other costs can reduce an account balance.

How the EDI planning illustration works

The calculator begins with three editable values:

• Starting balance: $300
• Daily planning rate: 2%
• Planning period: 2 years

These are Owner-selected educational defaults. They are not described as typical, expected, achievable, promised or guaranteed. You may change all three values.

You also choose a start date (the default is today) and, optionally, a single contribution or withdrawal with a frequency. The illustration begins the day after the start date, and the first calculation day is the first weekday you include after the start date.

Calendar years and months preserve the start-date day when that day exists in the destination month. If it does not exist, the period ends on the final valid day of that month. For example, one month after January 31 ends on February 28, or February 29 in a leap year.

For every selected calculation day, the calculator:

1. Begins with the opening balance.
2. Multiplies that balance by the selected daily planning rate and rounds the result to the nearest cent.
3. Applies the selected reinvestment percentage and rounds the retained amount to the nearest cent.
4. Records the remainder (rounded hypothetical amount minus retained amount) as not reinvested.
5. Adds a contribution, or subtracts a withdrawal, on the calculation days its frequency selects.
6. Uses the resulting closing balance as the next included day’s opening balance.

Only the weekdays selected by the user are included. A day excluded from the calculation does not receive a spreadsheet row and does not apply the daily planning rate. At least one weekday must be selected.

How amounts are calculated to the cent

Every balance and every cash movement in the illustration is tracked as a whole number of cents. For each included calculation day:

• The hypothetical daily calculated amount is the opening balance times the daily planning rate, rounded to the nearest cent.
• The amount retained for compounding is that rounded amount times the reinvestment percentage, rounded to the nearest cent.
• The amount not reinvested is the rounded hypothetical amount minus the retained amount.
• A contribution or withdrawal is applied in cents, added or subtracted according to its type.
• The closing balance is the opening balance plus the retained amount plus the contribution or minus the withdrawal.

Because the calculator works in whole cents, every spreadsheet row and every summary total reconciles exactly to the cent. A withdrawal that would drive the balance below zero is not permitted, and the calculator will not display an unusable value such as infinity.

Limits for this educational tool

• Start date between 1970 and 2100.
• Planning period up to 40 years, and no more than 15,000 calendar days in total.
• Up to 15,000 calculation rows. Selections that would exceed this are rejected before any rows are generated.
• Daily planning rate and reinvestment percentage between 0 and 100.
• Starting balance and transaction amount up to $1,000,000,000, entered as a number that is zero or greater.

Missing, non-numeric, negative, out-of-range, or impossible values are rejected with a plain-language message, and no results are shown until every value is valid. Values are never silently changed to fit.

The EDI compounding formula

When the entire calculated amount is retained and there are no contributions or withdrawals, the calculator uses:

A = P(1 + r)ⁿA equals P times, open parenthesis, 1 plus r, close parenthesis, raised to the power of n.

Where:

• A is the illustrated ending balance.
• P is the starting balance.
• r is the daily planning rate expressed as a decimal.
• n is the number of selected calculation days.

A 2% daily planning rate is entered in the formula as:

2 ÷ 100 = 0.02

Example using the CGG-EDI defaults

Starting balance: P = $300

Daily planning rate: r = 2% = 0.02

With 100% reinvestment:

This example demonstrates the arithmetic only. It does not mean that a 2% result will occur on either day or continue throughout the selected period.

Partial reinvestment

The reinvestment percentage controls how much of each hypothetical calculated amount is added to the balance used for the next included day.

For example, if the calculator illustrates a $10 daily amount and the reinvestment setting is 80%:

• $8 is retained in the illustrated balance.
• $2 is listed as not reinvested.
• The next included calculation day begins with the prior balance plus the retained $8.

An amount identified as “not reinvested” is only part of the mathematical illustration. It does not represent money actually earned, withdrawn, or received.

Contributions and withdrawals

You may add one optional transaction. Its type sets the direction: a contribution is added to the balance, a withdrawal is subtracted from it. The type, not a minus sign or a negative number, decides whether the amount is added or subtracted, and the amount you enter is always a positive number.

The frequency decides which calculation days the transaction is applied on, at the end of that day:

• One-time: after the included calculation day number you enter.
• Daily: after every included calculation day.
• Weekly: after the final included calculation day in each Monday to Sunday week.
• Monthly: after the final included calculation day in each calendar month.

A contribution increases the balance used for later calculations. A withdrawal decreases it. The calculator will not permit a withdrawal that produces an invalid negative balance, and a one-time transaction dated after the last calculation day is rejected.

Contributions and withdrawals are user-entered planning assumptions. They are not connected to a bank, broker, payment account, or OANDA account.

Reading your spreadsheet results

After you select Calculate, the calculator shows a summary and then an on-page spreadsheet with one row for each included calculation day.

The summary shows:

• Starting balance
• Number of calculation days
• Start date
• End date
• Ending balance
• Total hypothetical calculated amount
• Total retained for compounding
• Total not reinvested
• Total contributions
• Total withdrawals
• Cumulative hypothetical change

The spreadsheet contains:

• Calculation day
• Date
• Opening balance
• Daily planning rate
• Hypothetical daily calculated amount
• Reinvestment percentage
• Amount retained for compounding
• Amount not reinvested
• Contribution or withdrawal
• Closing balance
• Cumulative hypothetical change

The spreadsheet is generated only for your current browser session. CGG-EDI does not save the calculation to WordPress, a member account, or a database.

Questions about the EDI Calculator

What is the daily planning rate?

The daily planning rate is a percentage chosen solely to create a mathematical illustration. It is not an interest rate offered by CGG-EDI, a predicted trading return, or a guaranteed result.

Why are $300, 2% and two years shown automatically?

They are the Owner-approved starting values for demonstrating the EDI educational concept. Every value is editable. Their presence does not mean that 2% per day is expected or achievable.

What is the reinvestment percentage?

It is the portion of each hypothetical calculated amount that the illustration adds to the balance used for the next selected day.

Can I exclude weekends or select specific days?

Yes. You can choose the days included in the illustration. Monday through Friday are selected by default, but you may change the selection.

Does the calculator use actual trading results?

No. It does not use market prices, trades, deposits, broker statements, or OANDA account data.

Does the spreadsheet predict what my account will become?

No. It shows only the mathematical result of repeatedly applying the values entered. It does not account for the uncertainty of actual trading.

Does the calculator include trading costs and losses?

Not in this educational phase. The illustration does not automatically model spreads, slippage, financing charges, fees, taxes, execution delays, missed trading days, or losses. Actual results can therefore differ substantially.

Does CGG-EDI provide investment advice through this calculator?

No. CGG-EDI is an education and training platform. The calculator does not recommend an investment, broker, security, currency pair, trade, or strategy.