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Daily compound interest

Project the future value of a balance using compound interest based on the rate, term, and compounding frequency.

INPUTSEnter your figures
METHODOLOGY

Transparent calculation

Project the future value of a balance using compound interest based on the rate, term, and compounding frequency.

Calculation equationFV = P × (1 + r / 365) ^ (365 × t)Preset assumptions can be adjusted in the calculator when applicable.
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Related calculators

Weekly compound interest→Monthly compound interest→Quarterly compound interest→Semiannual compound interest→Annual compound interest→Future value with weekly compounding→
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Results are mathematical estimates based solely on the values entered. They are not financial, investment, tax or legal advice, nor an offer or recommendation of any financial product.

FinanceCalc · 2026

Daily compounding: what the calculator really does

Daily compounding adds interest to the balance 365 times per year. For the same quoted nominal annual rate, compounding more often produces a slightly different balance than annual compounding. This tool assumes a fixed nominal rate and a 365-day year; it does not pull live bank rates.

Formula

FV = P × (1 + r / 365) ^ (365 × t)

P is starting principal, r is the annual nominal rate as a decimal, and t is years. The calculator divides the annual rate by 365 and applies that daily factor 365 × t times. No regular contributions, tax, fees or rate changes are included.

Worked example with the default inputs

Starting principal: $100,000 · Annual rate: 5% · Years: 10

$164,866.48

Interest earned: $64,866.48

Scenario comparison

Time horizonResult
1 years$105,126.75
5 years$128,400.34
10 years$164,866.48

Every row holds the starting balance and annual rate constant while changing only the number of years. Gains are the final balance less the principal.

Frequently asked questions

Does daily interest mean the rate is 5% every day?

No. A 5% nominal annual rate is divided into 365 periodic rates. Applying 5% each day would be an entirely different calculation.

Is APY the same as the nominal rate?

Not necessarily. At a fixed nominal annual rate, daily compounding produces an effective annual yield of (1 + r/365)^365 − 1.

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Key calculators in this category

Future value with semiannual compoundingDoubling time at 10%Annual compound interest