{"section":"tutorials","requestedLocale":"en","requestedSlug":"how-do-you-calculate-payments-in-installments-with-compound-interest","locale":"en","slug":"how-do-you-calculate-payments-in-installments-with-compound-interest","path":"docs/en/tutorials/payments/payments-overview/how-do-you-calculate-payments-in-installments-with-compound-interest.md","branch":"main","content":"There are two possible configurations for collecting installment payments with compound interest:\n- Collection at the **beginning of the period**;\n- Collection at the **end of the period**.\n\n## Beginning of the period\n\nCollection at the beginning of the period is calculated as follows:\n\n1. i = Interest rate\n2. n = Number of installments\n3. PV = Present Value (total amount of the purchase without interest)\n4. Installment = ![juros-inicio-periodo](https://cdn.statically.io/gh/vtexdocs/help-center-content/refs/heads/main/docs/en/tutorials/payments/payments-overview/how-do-you-calculate-payments-in-installments-with-compound-interest_1.png)\n\n## End of the period\n\nCollection at the end of the period is calculated as follows:\n\n1. i = Interest rate\n2. n = Number of installments\n3. PV = Present Value (total amount of the purchase without interest)\n4. Cash Flow Multiplier =![cash-flow](https://cdn.statically.io/gh/vtexdocs/help-center-content/refs/heads/main/docs/en/tutorials/payments/payments-overview/how-do-you-calculate-payments-in-installments-with-compound-interest_2.png)\n5. Installment = `PV x Cash Flow Multiplier`\n\n## Examples\n\n### Beginning of the period\n\n1. i = 1%\n2. n = 12\n3. PV = 1000\n![conta0](https://cdn.statically.io/gh/vtexdocs/help-center-content/refs/heads/main/docs/en/tutorials/payments/payments-overview/how-do-you-calculate-payments-in-installments-with-compound-interest_3.png)\n\n### End of the period\n\n1. i = 1%\n2. n = 12\n3. PV = 1000\n4. ![conta1](https://cdn.statically.io/gh/vtexdocs/help-center-content/refs/heads/main/docs/en/tutorials/payments/payments-overview/how-do-you-calculate-payments-in-installments-with-compound-interest_4.png)![conta2](https://cdn.statically.io/gh/vtexdocs/help-center-content/refs/heads/main/docs/en/tutorials/payments/payments-overview/how-do-you-calculate-payments-in-installments-with-compound-interest_5.png)"}