Daily Compound Interest Calculator
This calculator locks compounding to daily, the schedule many savings accounts actually use, and shows the real dollar difference against monthly and annual compounding. Results update as you type.
What you're depositing today
Optional. Added every month.
Your account's yearly rate
How long the money stays put
Most banks use 365; some use a 360-day convention
Future value, compounded daily
- Interest earned$0
- Same inputs, monthly compounding$0
- Same inputs, annual compounding$0
- Daily beats monthly by$0
Hover or tap the chart for any year's balance.
An estimate from your inputs. Banks quote APY, which already includes compounding; compare APY to APY when shopping.
| Year | Paid in | Interest that year | Balance |
|---|
Daily compounding, honestly sized
This tool locks n to the number of days in the year: A = P(1 + r/365)365t on the standard basis, with a 360-day option because some banks calculate on that convention. The headline surprise for most visitors is the comparison row: at everyday savings rates, daily compounding beats monthly by cents, not dollars. On $10,000 at 4% for five years, the gap is around four dollars. Frequency matters at the margins; the rate does the heavy lifting.
Where daily granularity genuinely matters is short horizons and high rates, which is also where daily-compounding phrasing shows up in crypto staking and lending products. The arithmetic there is identical to a bank account's, but the advertised rates are not guarantees and the platforms carry risks a bank account does not; this page computes the math and stops there.
Built by Cedrick Reese of Ready Utilities. The daily compounding formula is checked against the SEC's compound interest methodology at investor.gov, the 365/360 day-count distinction against published bank account disclosures, and the savings-account compounding claim in the FAQ against Ally Bank's published product documentation and Finder's banking research, checked when this page was written and reviewed on a maintenance cycle. Last reviewed: September 1, 2026.
Frequently asked questions
What does $1,000 at 6% compounded daily grow to in 2 years?
About $1,127.49 on a 365-day basis. Monthly compounding on the same inputs gives about $1,127.16, a gap of roughly 33 cents. Run it above to see the full daily-vs-monthly-vs-annual row for your own numbers.
Does daily compounding really matter compared with monthly?
Less than most people expect. The frequency gap shrinks as rates fall and is dwarfed by the rate itself: a slightly higher APY at monthly compounding beats a lower APY at daily compounding. The comparison row above shows the actual dollar difference for your inputs, which is usually the fastest cure for frequency anxiety.
Do savings accounts compound daily?
Commonly, yes. Many U.S. savings accounts compound interest daily and post it to the account monthly, though the schedule varies by bank; Ally, for example, states its savings products compound daily. The APY a bank quotes already includes whatever frequency it uses, so comparing APYs compares like with like.