See exactly how daily compounding grows your money, day by day.
Calculator
Final Balance
$11,618.22
Interest Earned
$1,618.22
Total Days
1,095
Effective APY
5.1267%
Balance Breakdown
Key Formula
A = P × (1 + r/365)n
P = principal | r = annual rate (decimal) | n = days
Effective APY = (1 + r/365)365 − 1 = 5.1267%
Growth Schedule per year
| Year | Interest Earned | Total Interest | Balance |
|---|---|---|---|
| 1 | $1.44 | $512.67 | $10,512.67 |
| 2 | $1.51 | $1,051.63 | $11,051.63 |
| 3 | $1.59 | $1,618.22 | $11,618.22 |
The Daily Compound Interest Calculator shows exactly how your money grows when interest compounds every single day — the most powerful compounding frequency available. Enter your principal, annual interest rate, and a duration in days or years to instantly see your final balance, total interest earned, effective APY, and a full period-by-period growth schedule. Optional daily deposits let you model consistent saving strategies.
Daily compound interest means interest is calculated and added to your balance every day. Each day's interest is based on the new, higher balance — so you earn interest on your interest. The formula is A = P × (1 + r/365)^n, where P is principal, r is the annual rate as a decimal, and n is the number of days.
Daily compounding applies interest 365 times per year instead of 12 (monthly) or 1 (annually). This means your effective annual yield (APY) is slightly higher than the stated annual rate. For example, a 5% annual rate compounded daily yields an effective APY of about 5.1267%, compared to 5.1162% monthly.
The effective annual rate — also called APY — is the true yearly return after accounting for daily compounding. It's calculated as (1 + r/365)^365 − 1. APY is what you should compare across savings accounts and investments, because it reflects the real growth including the compounding effect, not just the advertised nominal rate.
Yes. For savings accounts and CDs that compound daily, enter the APY (annual percentage yield) or APR and the calculator shows your exact balance growth. For loans, the same math applies — a daily-compounding loan accrues slightly more interest than a monthly-compounding loan at the same stated rate, so comparing APR vs APY is important.