Daily Compound Interest Calculator
Daily Compound Interest Calculator
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Currency:
$ € £ ₹ ¥
Principal amount:
₹ 40000
Interest rate:
0.5 % daily
0 0 500
Yes No 100%
₹444,273.68 0.5%
Percentage profit End date
₹40,000.00
Earnings breakdown
Calculator is for informational purposes only. Please use it at your own risk. Full disclaimer. Decimals are rounded for figures over 1bn. *
indicates part of a week/month/year.
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On this page:
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.
A = P(1+r)^t
Where:
A = the future value of the investment
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
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
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.
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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.
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.