Daily Compound Interest Calculator

Work out daily compound interest instantly with clear inputs, formula shown and shareable results.

About Daily Compound Interest Calculator

Daily compounding credits interest every day, so each day's balance earns on the previous day's interest. Over a year it produces slightly more than monthly compounding — the effective rate on 7.5% daily is about 7.79%.

Formula

Daily compounding

A = P(1 + r/365)^days; EAR = (1 + r/365)^365 - 1

Worked example

With the default values below, Daily Compound Interest Calculator returns Balance After The Period of $107,787.58. Change any input above and every figure here is recalculated in your browser.

Inputs used

Principalminimum 0: 100,000
Annual Interest Rateaccepts 0–100 %: 7.5 %
Number Of Daysaccepts 1–3,650: 365

Results

Balance After The Period: $107,787.58
Interest Earned: $7,787.58
Daily Rate: 0.02054795%
Effective Annual Rate: 7.7876%

Step by step

1Values used
2Daily compounding
3Balance After The Period= 107,787.58
4Interest Earned= 7,787.58
5Daily Rate= 0.02054795
6Effective Annual Rate= 7.7876

Assumptions and limits

The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or fees or charges into account.
Figures are rounded for display to 8 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.

Frequently Asked Questions

How much better is daily than monthly compounding?

Only a few basis points at normal rates — the jump from annual to monthly is far larger than monthly to daily.

Should 360 or 365 days be used?

Retail products generally use 365; money-market conventions often use 360, which raises the daily rate slightly.