Daily Compound Interest Calculator
Grow a balance with interest compounded every day (365 periods per year).
Daily compounding adds interest to the balance every day, using 365 periods a year. $10,000 at 5% compounded daily for 3 years grows to about $11,618 — slightly more than monthly compounding at the same rate. This calculator compounds daily and does not adjust for leap years or specific day-count conventions. Any deposits are added each compounding period. Enter your numbers to see the total.
These results are estimates for informational purposes only and are not financial, tax, or legal advice. Your actual figures from a lender or the IRS may differ. Consult a qualified professional before making decisions.
Future value after 3 years
$11,618.22
What you put in vs. interest earned
Balance by year
| Year | You put in | Interest | Balance |
|---|---|---|---|
| 1 | $10,000 | $513 | $10,513 |
| 2 | $10,000 | $1,052 | $11,052 |
| 3 | $10,000 | $1,618 | $11,618 |
About the Daily Compound Interest Calculator
Daily compounding credits interest to your balance once every day, so tomorrow's interest is figured on today's balance plus today's interest. It is the most frequent compounding most banks offer, common on savings accounts and lines of credit, and it edges out monthly or annual compounding at the same nominal rate — though the difference is smaller than people expect. At 5%, daily compounding produces an effective annual yield of about 5.13%, versus 5.12% monthly, so the daily advantage is real but modest at ordinary rates. This tool uses a fixed 365 periods per year and does not adjust for leap years or specific day-count conventions such as actual/360, which some lenders use and which would shift the result slightly. Any deposits you enter are added each compounding period — daily, matching the compounding cadence shown — so a daily deposit compounds from the very next day. Because the effective yield captures the true annual effect of daily compounding, comparing accounts by APY rather than by the stated rate is the cleanest way to see what daily compounding is actually worth to you.
Frequently asked questions
How much more does daily compounding earn than monthly?+
A little. At 5%, daily compounding yields about 5.13% effectively versus 5.12% for monthly — a difference of roughly a dollar a year per $10,000. More frequent compounding helps, but with steeply diminishing returns.
How many days per year does this use?+
A fixed 365. The calculator does not add a day in leap years or apply day-count conventions like actual/360, so a lender using a different convention may show a slightly different figure.
When are deposits added?+
Each compounding period, which for daily compounding means every day. A deposit begins earning interest from the next day, matching the daily cadence.
What is the effective annual yield?+
It's the true yearly return once daily compounding is included — the APY. It's the number to compare across accounts, because it reflects the compounding the stated rate alone doesn't show.