Daily compound interest
Explore how interest builds, day after day.
Value after daily compounding
For illustration only. Read the assumptions below for the full picture.
Understand your result.
Explore a nominal annual interest rate compounded daily using a fixed 365-day convention. This is different from assuming a daily trading profit.
The effective annual yield includes reinvestment of interest. Compare it with the nominal rate to understand the impact of compounding.
A worked example.
Using this calculator’s default inputs, value after daily compounding is ₹1,08,328. This is an illustration of the stated formula, not a forecast.
See the example inputs
| Investment amount | ₹1,00,000 |
|---|---|
| Nominal annual interest rate | 8 % |
| Investment period | 365 days |
A common mistake to avoid
Entering a daily percentage return in the field labelled nominal annual rate.
Questions you might have.
Does a leap year change the divisor?
No. This mathematical tool always uses 365. A specific financial contract may use another convention.
Can I add daily deposits?
No. This tool uses a single starting principal with no further cash flows.
Prepared by INDwise · Calculation checks: 29 October 2026 · How we check the maths · Report a correction
How we calculate it
Future value = principal × (1 + nominal annual rate ÷ 365)^days. No additional contributions.
Assumptions & things to know
Fixed 365-day convention, including leap years. This is annual interest compounded daily, not a promised daily trading return. Taxes, fees and withdrawals excluded.
Your privacy & sharing
Your financial inputs are used only within this page. Saved calculators use this browser’s local storage. Sharing creates a link with the entered values, so anyone with that link can see those values. A downloaded summary stays on your device.