Work out daily compound interest instantly with clear inputs, formula shown and shareable results.
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%.
Daily compounding
A = P(1 + r/365)^days; EAR = (1 + r/365)^365 - 1
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.
Only a few basis points at normal rates — the jump from annual to monthly is far larger than monthly to daily.
Retail products generally use 365; money-market conventions often use 360, which raises the daily rate slightly.