Daily compounding calculator
See how a balance grows when interest is added every day, with options for weekdays only and partial reinvestment.
$382.46
6.183%
Year by year
| Year | Interest | Balance |
|---|---|---|
| Year 1 | $185.49 | $3,185.49 |
| Year 2 | $196.96 | $3,382.46 |
Each earning day gets the yearly rate divided by the number of earning days, and the reinvested share is added to the balance. Interest that is not reinvested is counted as paid out. Deposits or withdrawals happen once a month. Choosing a currency only changes how amounts are shown. Estimates only.
How daily compounding works
Balance = P × (1 + r ÷ n)n × t
P is the starting amount, r is the yearly rate as a decimal, n is the number of earning days in a year, and t is the number of years. Every earning day gets one share of the yearly rate, and that interest joins the balance before the next day.
Example: 3,000 at 6% a year for 2 years, compounded every day, grows to about 3,382. Compounded once a year it would reach about 3,371, so daily compounding adds roughly 11 more.
Choosing weekdays only lowers n, and reinvesting less than 100% of the interest slows growth. Daily compounding also appears in some borrowing and trading products, where it can work against you, so check the terms.