Daily Compound Interest Calculator
Daily compounding over any number of days, with the gain over annual compounding shown. The difference is smaller than most people expect and it is the reason continuous compounding is a limit rather than a leap.
Also called: daily interest calculator, compound daily.
$108,327.76 after 365 days, $8,327.76 of it interest. Daily compounding at 8% gives an effective annual yield of 8.33%.
An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.
This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for United States change on a published schedule; the effective date is shown on every rule-based tool.
How this is calculated
Divide the annual rate by 365 and apply it every day. Compounding more often always earns more, but with sharply diminishing returns: at eight percent, moving from annual to daily compounding adds about a third of a percentage point of yield, and moving from daily to continuous adds almost nothing. The extra over annual compounding is shown so that ceiling is visible rather than assumed.
value = principal * (1 + annual rate / 365) ^ days- P
- Principal (currency)
- r
- Annual rate (decimal)
- d
- Days (days)
Method and limits
What it assumes
- A 365-day year, and additions credited at the end of each day.
What it deliberately does not model
- Actual products use varied day-count conventions, some of which use 360.
Formula version 1.0.0 · definition 1.0.0 · United States · Report a problem with this calculator
Frequently asked questions
- How much better is daily than monthly compounding?
- Very little. At eight percent the difference over a year is a few hundredths of a percentage point. The rate matters enormously and the frequency barely does.