Daily Compound Interest Calculator
Calculate compound interest with daily compounding. See how your money grows each day.
1y
Quick Periods
Daily Breakdown
| Day | Daily Interest | Total Interest | Balance |
|---|---|---|---|
| 1 | $1.37 | $1.37 | $10,001 |
| 2 | $1.37 | $2.74 | $10,003 |
| 3 | $1.37 | $4.11 | $10,004 |
| 4 | $1.37 | $5.48 | $10,005 |
| 5 | $1.37 | $6.85 | $10,007 |
| 6 | $1.37 | $8.22 | $10,008 |
| 7 | $1.37 | $9.59 | $10,010 |
| 8 | $1.37 | $10.96 | $10,011 |
| 9 | $1.37 | $12.34 | $10,012 |
| 10 | $1.37 | $13.71 | $10,014 |
| 11 | $1.37 | $15.08 | $10,015 |
| 12 | $1.37 | $16.45 | $10,016 |
| 13 | $1.37 | $17.82 | $10,018 |
| 14 | $1.37 | $19.20 | $10,019 |
| 15 | $1.37 | $20.57 | $10,021 |
| 16 | $1.37 | $21.94 | $10,022 |
| 17 | $1.37 | $23.31 | $10,023 |
| 18 | $1.37 | $24.69 | $10,025 |
| 19 | $1.37 | $26.06 | $10,026 |
| 20 | $1.37 | $27.43 | $10,027 |
| 21 | $1.37 | $28.81 | $10,029 |
| 22 | $1.37 | $30.18 | $10,030 |
| 23 | $1.37 | $31.55 | $10,032 |
| 24 | $1.37 | $32.93 | $10,033 |
| 25 | $1.37 | $34.30 | $10,034 |
| 26 | $1.37 | $35.68 | $10,036 |
| 27 | $1.37 | $37.05 | $10,037 |
| 28 | $1.37 | $38.43 | $10,038 |
| 29 | $1.38 | $39.80 | $10,040 |
| 30 | $1.38 | $41.18 | $10,041 |
| ... | |||
| 365 | $1.44 | $512.67 | $10,513 |
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What is Daily Compound Interest?
Daily compound interest means your interest is calculated and added to your balance every single day. This is more frequent than monthly or annual compounding, resulting in slightly higher returns.
With daily compounding, you earn "interest on interest" every day. The difference vs monthly compounding is small for short periods, but grows over time.
The Daily Compounding Formula
Where:
- A = Final Amount
- P = Principal (initial investment)
- r = Annual interest rate (as decimal)
- 365 = Days per year
- t = Time in years
Example Calculation
$10,000 at 5% annual rate for 1 year:
Daily Compounding:
- A = $10,000 × (1 + 0.05/365)^365
- A = $10,000 × 1.051267...
- A = $10,512.67
Monthly Compounding (for comparison):
- A = $10,000 × (1 + 0.05/12)^12
- A = $10,511.62
Daily compounding earns $1.05 more per year per $10,000.
Daily Rate vs APY
| Annual Rate | Daily Rate | APY (Effective) |
|---|---|---|
| 3% | 0.00822% | 3.045% |
| 5% | 0.01370% | 5.127% |
| 7% | 0.01918% | 7.250% |
| 10% | 0.02740% | 10.516% |
Who Uses Daily Compounding?
- High-yield savings accounts - Many online banks compound daily
- Money market accounts - Often compound daily
- Certificates of Deposit (CDs) - Some offer daily compounding
- Crypto staking - Many platforms compound rewards daily
The Power of Time
$10,000 at 5% APY with daily compounding:
| Period | Balance | Interest Earned |
|---|---|---|
| 1 year | $10,513 | $513 |
| 5 years | $12,840 | $2,840 |
| 10 years | $16,487 | $6,487 |
| 20 years | $27,183 | $17,183 |
| 30 years | $44,817 | $34,817 |
Fun Facts 🎉
🧮 Einstein's Quote
Albert Einstein reportedly said: "Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it."
Whether he actually said it or not, the math checks out!
💳 The Dark Side: Credit Card Debt
Daily compounding works AGAINST you with debt:
- $5,000 credit card debt at 20% APR
- Minimum payment only: Takes 25+ years to pay off
- Total paid: $12,000+ (more than double!)
This is why banks love daily compounding on credit cards.
🏦 Why Banks Advertise APY
Banks always show APY (Annual Percentage Yield) instead of APR because:
- 5% APR with daily compounding = 5.127% APY
- The higher number looks better in ads!
Now you know the trick.
📊 Daily vs Monthly: Real Difference
On $100,000 at 5% for 10 years:
- Annual compounding: $162,889
- Monthly compounding: $164,701 (+$1,812)
- Daily compounding: $164,872 (+$171 more)
Daily compounding adds about $171 extra over monthly for 10 years. Nice bonus, but don't obsess over it!
The frequency of compounding matters less than: (1) the interest rate, (2) how much you invest, and (3) how long you stay invested. Focus on those first!