Daily Compound Interest Calculator
Calculate growth with interest compounded every day. See the effective APY and your balance year by year.
Most savings accounts compound daily. Interest is worked out every day and added to your balance.
This calculator uses 365 periods a year. It shows what that does to your money over time.
How it works
The daily rate is the annual rate divided by 365. Each day that rate is applied to the current balance.
The result is a slightly higher yearly return than the headline rate. Banks call that figure the APY.
The formula
A = final amount, P = starting amount, r = annual rate as a decimal, t = years.
Tips
- Compare accounts by APY, not by rate. APY already includes the compounding.
- Daily compounding beats monthly by a few cents per hundred dollars a year. It is nice, not decisive.
Frequently asked questions
Is daily compounding better than monthly?
Yes, but only slightly. On $10,000 at 5% the difference is about $1 a year.
Do banks pay interest every day?
They usually calculate it daily and pay it monthly. The effect on your balance is the same as daily compounding.
This is not financial advice. Nothing on this site is investment, tax, legal or financial advice of any kind.
The calculators give simplified estimates from the numbers you enter. They ignore taxes, fees, rate changes and real market returns, and they can be wrong.
Do not make financial decisions based on these results. Speak to a licensed financial adviser, accountant or lender before acting, and read the full disclaimer.