Daily Compound Interest Calculator - Real-Time Daily Compounding
Calculate daily compounding interest on savings accounts and investments. See how daily accrual outpaces monthly and annual compounding.
Ending Portfolio Balance
Total Deposits Invested
Compound Interest Earned
Compounding Frequency Advantage
By compounding daily instead of annually, your money earns an additional -- over this timeframe.
Frequently Asked Questions
What is daily compound interest and how does it work?
Daily compound interest calculates and credits earned interest to your balance every single day (365 times per year). In subsequent days, you earn interest on both your initial principal and previously accumulated interest, accelerating exponential wealth growth.
What is the formula for daily compound interest?
The daily compound formula is A = P(1 + r/365)^(365 * t), where P is initial principal, r is annual interest rate (as a decimal), and t is time in years. When recurring deposits are added, interest is calculated on daily running balances.
How much more money do you earn with daily vs monthly compounding?
On a $100,000 deposit at 7% APR over 20 years, daily compounding yields $405,514 compared to $403,873 for monthly compounding—earning you an extra $1,641 purely from compounding frequency.
Do high-yield savings accounts (HYSA) compound daily?
Yes, the vast majority of high-yield savings accounts and money market accounts compound interest daily and credit the payment to your balance on the last business day of the month.