--- title: Why does multiplying one day’s return by 365 give a different annual return than GRANITE’s annualized return? description: Why does multiplying a day’s return by 365 give a different number? Learn the difference between simple interest, compounding, and annualized returns in GRANITE. --- [Skip to content](https://support.granite.eg/en/why-does-multiplying-one-days-return-by-365-give-a-different-annual-return-than-granites-annualized-return#main-content) [More support](https://support.granite.eg/en/kb-tickets/new?hsLang=en) [![Granite Logos-Horizontal- Main Logo- Blue Black-18](https://support.granite.eg/hs-fs/hubfs/Granite%20Logos-Horizontal-%20Main%20Logo-%20Blue%20Black-18.png?width=300&height=86&name=Granite%20Logos-Horizontal-%20Main%20Logo-%20Blue%20Black-18.png)](https://granite.eg) Open main navigation Close main navigation - [More support](https://support.granite.eg/en/kb-tickets/new) - [Contact us](mailto:cs@granite.eg) [Contact us](mailto:cs@granite.eg) How can we help you? - There are no suggestions because the search field is empty. 1. [GRANITE](https://support.granite.eg/en?hsLang=en) 2. [General](https://support.granite.eg/en/general?hsLang=en) 3. [Returns & Performance](https://support.granite.eg/en/general?hsLang=en#returns-performance) May 22, 2026 # Why does multiplying one day’s return by 365 give a different annual return than GRANITE’s annualized return? ## Understand the difference between simple interest and compounding, and why annualized returns may look higher than simply multiplying a day’s return. A common point of confusion is that there are **two different ways to calculate an annual return from a daily return**. ### 1. Simple Interest (Multiplying by 365) This method assumes that your daily return is earned only on your original balance and never added back. For example, if a daily return translates to **17% annually using simple interest**, a balance of **EGP 100,000** would become: **EGP 100,000 → EGP 117,000 after one year** This is simply the result of multiplying the daily return by **365 days**. ### 2. Compounding (How returns actually accumulate) In reality, returns are added to your balance daily. This means that the next day’s return is calculated not only on your original amount, but also on the returns already earned. Example: **Day 1** EGP 100,000 → EGP 100,046.58 **Day 2** The return is calculated on **EGP 100,046.58**, not EGP 100,000. Over time, this creates a compounding effect. So, the same daily return that translates to approximately **17% using simple interest** may result in an **effective annual return of around 18.5% when compounded daily**. Meaning your balance may become approximately: **EGP 100,000 → EGP 118,500 after one year** ### In simple terms - **Simple Interest** = Daily return × 365 - **Compounding** = Daily returns are added to your balance and generate additional returns over time That is why multiplying one day’s return by 365 may give a different result than an annualized return. ### Important Note The return shown in GRANITE is a **one-month annualized indicator** based on recent performance. 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