Daily Compound Interest

By Alastair Hazell. Reviewed by Chris Hindle.

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Currency:

$ € £ ₹ ¥

Principal amount:

₹ 2500

Interest rate:

20 % yearly

Years: Months: Days:

20 0 0

Include all days of week? Daily reinvest rate

Yes No 100%

Additional contributions: (optional)

None Deposits Withdrawals

Additional deposits (optional)

₹ 2500 monthly

One-time additional deposit (optional)

 ₹ 28/01/2024

Start date? today

28/12/2023 Calculate
 thecalculatorsite.com

Projection for 20 years

Investment value Total days / Business days

₹8,241,793.77 7305 / 7305

Total interest / earnings Daily interest rate

₹7,639,293.77 0.055%
Additional deposits End date

₹600,000.00 28 Dec 2043

Percentage profit Initial balance

1267.9% ₹2,500.00
 Earnings breakdown

weekly monthly yearly

Year Deposit Earnings Total Earnings Balance

2023* ₹0.00 ₹4.11 ₹4.11 ₹2,504.11

2024 ₹30,000.00 ₹4,060.68 ₹4,064.79 ₹36,564.79

2025 ₹30,000.00 ₹11,594.54 ₹15,659.33 ₹78,159.33

2026 ₹30,000.00 ₹20,800.90 ₹36,460.23 ₹128,960.23

2027 ₹30,000.00 ₹32,044.96 ₹68,505.20 ₹191,005.20

2028 ₹30,000.00 ₹45,908.88 ₹114,414.08 ₹266,914.08

2029 ₹30,000.00 ₹62,579.10 ₹176,993.17 ₹359,493.17

2030 ₹30,000.00 ₹83,070.17 ₹260,063.34 ₹472,563.34

2031 ₹30,000.00 ₹108,096.65 ₹368,159.99 ₹610,659.99

2032 ₹30,000.00 ₹139,074.38 ₹507,234.37 ₹779,734.37

2033 ₹30,000.00 ₹176,084.62 ₹683,318.99 ₹985,818.99

2034 ₹30,000.00 ₹221,698.53 ₹905,017.52 ₹1,237,517.52

2035 ₹30,000.00 ₹277,408.44 ₹1,182,425.96 ₹1,544,925.96

2036 ₹30,000.00 ₹346,486.17 ₹1,528,912.13 ₹1,921,412.13

2037 ₹30,000.00 ₹428,778.84 ₹1,957,690.98 ₹2,380,190.98

2038 ₹30,000.00 ₹530,323.05 ₹2,488,014.03 ₹2,940,514.03

2039 ₹30,000.00 ₹654,342.63 ₹3,142,356.66 ₹3,624,856.66

2040 ₹30,000.00 ₹808,241.36 ₹3,950,598.02 ₹4,463,098.02

2041 ₹30,000.00 ₹991,345.07 ₹4,941,943.09 ₹5,484,443.09

2042 ₹30,000.00 ₹1,217,405.36 ₹6,159,348.45 ₹6,731,848.45

2043 ₹30,000.00 ₹1,479,945.31 ₹7,639,293.77 ₹8,241,793.77

Total ₹600,000.00 ₹7,639,293.77 ₹7,639,293.77 ₹8,241,793.77

Calculator is for informational purposes only. Please use it at your own risk. Full disclaimer. Decimals are rounded for figures over 1bn.
Additional contributions are added at the end of the period. * indicates part of a week/month/year.

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arising out of or in connection with their use. Full disclaimer.
On this page:

• Daily compounding calculator

• What is daily compound interest?

• How to calculate daily compound interest

• Formula for daily compound interest

• Questions about our calculator

What is daily compound interest?

With compound interest, the interest you have earned over a period of time is
calculated and then credited back to your starting account balance. In the next
compound period, interest is calculated on the total of the principal plus the
previously-accumulated interest.

The more frequently that interest is calculated and credited, the quicker your
account grows. The interest earned from daily compounding will therefore be
higher than monthly, quarterly or yearly compounding because of the extra
frequency of compounds.

With some types of investments, you might find that your interest is compounded daily, meaning
that you're earning interest on both the principal amount and previously accrued interest on a daily
basis. This is often the case with trading where margin is used (you are borrowing money to trade).

Examples of these types of investment include CFD trading, Forex trading, spread-betting or options
for assets like stocks and shares, as well as commodities like oil and gold and cryptocurrencies like
Bitcoin and Ethereum. This is a very high-risk way of investing as you can also end up paying
compound interest from your account depending on the direction of the trade.

How to calculate daily compound interest

Daily compound interest is calculated using a version of the compound interest formula. To begin
your calculation, take your daily interest rate and add 1 to it. Then, raise that figure to the power
of the number of days you want to compound for. Finally, multiply your figure by your starting
balance. Subtract the starting balance from your total if you want just the interest figure.

Note that if you wish to calculate future projections without compound interest, we have a
calculator for simple interest without compounding.

Let's examine the formula in a bit more detail.

Formula for daily compound interest

The formula for calculating daily compound interest with a fixed daily interest rate is:

A = P(1+r)^t
Where:
A = the future value of the investment
P = the principal investment amount
r = the daily interest rate (decimal)
t = the number of days the money is invested for
^ = ... to the power of ...

Example investment

Let's use the example of $1,000 at 0.4% daily for 365 days.

P = 1000

r = 0.4/100 = 0.004

t = 365

Let's put these into our formula:

 A = P(1+r)^t

A = 1000(1+0.004)^365

A = 1000 * 4.2934377972993

A = 4293.4377972993

To get the total interest, we deduct the principal amount (1000) from the future value. This gives
us interest of $3293.44

Daily compounding with annual interest rate

If you have an annual interest rate and want to calculate daily compound interest, the formula you
need is:

A = P(1+r/365)^(365t)

Where:
A = the future value of the investment
P = the principal investment amount
r = the annual interest rate (decimal)
t = the number of years the money is invested for
^ = ... to the power of ...

Including additional deposits

Making regular, additional deposits to your account has the potential to grow your balance much
faster thanks to the power of compounding. Our daily compounding calculator allows you to include
either daily or monthly deposits to your calculation. Note that if you include additional deposits in
your calculation, they will be added at the end of each period, not the beginning.
Questions about our calculator
Here are some frequently asked questions about our daily compounding calculator.

What is the daily reinvest rate?

The daily reinvest rate is the percentage figure that you wish to keep in the investment for future
days of compounding. As an example, you may wish to only reinvest 80% of the daily interest
you're receiving back into the investment and withdraw the other 20% in cash.

Let's look at an example. If your initial investment is $5,000 with a 0.5% daily interest rate, your
interest after the first day will be $25. If you choose an 80% daily reinvestment rate, $20 will be
added to your investment balance, giving you a total of $5020 at the end of day one. The
remaining $5 will be withdrawn as cash.

Excluding weekends from calculations

You may wish to only compound your money on particular days of the week. Perhaps you only trade
on weekdays, or want to exclude Sundays. Our calculator gives you the option to exclude these days
from your calculation, giving you extra flexibility. Here's an example:

You want to compound for one year minus weekends (net business days). This
means your figure will compound for around 261 BUSINESS days, with an end date
365 days from your start date, depending on when the weekends fall.

The aim of this option is to give you maximum flexibility around how your interest is compounded
and calculated, whether you're Forex trading, trading with cryptocurrencies or simply buying and
selling stock assets.

And finally...
I hope you found our daily compounding calculator and article useful. At The Calculator Site we love
to receive feedback from our users, so please get in contact if you have any suggestions or
comments. You may also wish to check out our range of other finance calculation tools.