Compound Interest Calculator — Daily Compounding
Calculate how your money grows with daily, weekly, monthly or annual compounding — with a first-30-days daily breakdown
Daily Compounding
See your first 30 days of daily growth — perfect for understanding high-frequency compounding products
Effective Annual Rate
Instantly see the true EAR (Effective Annual Rate) — the real annual return after compounding frequency is applied
Dual Breakdown Table
Switch between a yearly projection table and a day-by-day view for the first month
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Compound Interest Calculator
Calculator Settings
⚡ Daily compounding maximises your returns
Calculation Results
Compounding Settings
Daily Compounding
365× per year
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Complete Guide to Compound Interest
What is Compound Interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Often described as "interest on interest", it causes wealth to grow at an exponentially faster rate than simple interest.
Albert Einstein reportedly called compound interest "the eighth wonder of the world". The longer you leave money compounding, the more dramatically it grows — particularly when compounding happens daily.
Compound Interest Formula
A = P × (1 + r/n)^(n×t)
Effective Annual Rate (EAR) = (1 + r/n)^n − 1
Where: A = Accrued amount | P = Principal | r = Annual rate (decimal) | n = Compounding periods per year | t = Time (years)
Simple Interest vs Compound Interest
Simple Interest
- • Calculated only on principal
- • Linear growth over time
- • Formula: I = P × r × t
- • Used in short-term loans
Compound Interest
- • Calculated on principal + earned interest
- • Exponential growth over time
- • Formula: A = P(1 + r/n)^(nt)
- • Used in savings, investments, DeFi
Why Daily Compounding Matters
Daily compounding means interest is calculated and added to your balance every single day. This means you start earning interest on yesterday's interest today — maximising your returns.
Example: At 10% annual rate on $10,000:
- • Annual compounding → $11,000 after 1 year
- • Monthly compounding → $11,047.13 after 1 year
- • Daily compounding → $11,051.56 after 1 year
Tips for Maximising Compound Interest
Tip 1: Start as early as possible — time is the most powerful variable in compound interest. Even small delays cost significantly.
Tip 2: Choose daily over annual compounding when available — it can add meaningfully to long-term returns at no extra cost.
Tip 3: Add regular deposits. Even small monthly contributions dramatically increase your final compounded balance.
Common Compound Interest Mistakes
❌ Confusing APY with APR
APY already accounts for compounding; APR does not. Always compare using APY for a fair comparison of investment returns.
❌ Withdrawing Earnings Early
Withdrawing interest before it can compound defeats the purpose. Reinvest to maintain exponential growth.
❌ Ignoring Fees
Platform fees and taxes reduce your effective return and can significantly erode long-term compound gains. Always factor them in.