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SOFR Compounded Rate

Compounds daily overnight rates across an interest period.

Formula

Compounded return = Π(1+r_i×d_i/360)-1

Variables: Daily SOFR r_i; day weights d_i

What it means

Compounds daily overnight rates across an interest period.

Example

Multiply each daily accrual factor across the period, then subtract one.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.