To calculate the Selic, it is necessary to use a mathematical formula.  (Central Bank of Brazil/Reproduction)

Acronym for Special System of Settlement and Custody, the Selic basically consists of a rate to interest calculation and control of inflationbeing used by Brazilian central bank (BCB) in its monetary policy — controlling all money circulating in the country.

Understanding how to calculate the Selic rate can be important for your financial life, especially because of the influence it has in other contexts that need to apply interest, such as loans, financing and banking applications.

How to calculate the Selic Rate?

To calculate the Selic, it is necessary to use a mathematical formula. (Central Bank of Brazil/Reproduction)Source: Brazilian central bank

The calculation methodology was also developed by the Central Bank and the result can be obtained through an equation, in which Lj is the value that corresponds to the daily application of the rate by operation number j; Vj is the financial value that corresponds to the fee for the operation number jen is the number of operations taken into account during the calculation process.

With the values ​​in mind, just make the substitutions in the formula and use the math to figure out the result. But don’t worry, this rate is automatically calculated by the Central Bank of Brazil.

The Selic rate was calculated at 11.75% in March, showing a significant increase in relation to the previous month.  (Shutterstock/Reproduction)The Selic rate was calculated at 11.75% in March, showing a significant increase in relation to the previous month. (Shutterstock/Reproduction)Source: shutterstock

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