Daily Compound Interest Calculator
Calculate how your money grows with daily compounding interest.
- Free to use
- No registration required
- Works on all devices
- Last updated
- 13-09-2026
Your result
₹1,49,175.93
Maturity amount
AI explanation
Formula
A = P × (1 + r/365)^(365×t)Worked example
₹1L at 8% for 5 years, daily compounding
| Field | Value |
|---|---|
| Principal | ₹1,00,000 |
| Annual interest rate | 8 |
| Duration | 5 |
| Maturity amount | ₹1,49,175.93 |
| Total interest earned | ₹49,175.93 |
Assumptions
- Uses 365 compounding periods per year regardless of leap years.
Frequently asked questions
Does daily compounding earn much more than monthly?
The difference is small in practice — for the same nominal rate, daily compounding earns only marginally more than monthly compounding since the compounding effect approaches a mathematical limit as the frequency increases.
What kinds of accounts use daily compounding?
Some savings accounts and short-term deposit products compound daily, though the interest is often still credited (paid out) monthly or quarterly.
How is daily compounding different from simple interest?
Simple interest is calculated only on the original principal throughout, while daily compounding recalculates interest on the growing balance every day, producing a higher total return over time.
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Sources
- Master Direction – Reserve Bank of India (Interest Rate on Deposits) — Reserve Bank of India. Effective 03-03-2016, checked 13-09-2026.
This calculator provides a general estimate only and does not constitute financial advice.
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