Daily compound interest calculator
Free, no sign-up · Facts checked 19 Oct 2026
What money (or a card balance) grows to when interest is added every day.
1₹1 lakh · 7% a year · 5 years
Final amount₹1,41,902- You put in
- ₹1,00,000
- Interest earned
- ₹41,902
Work it out
Final amount
₹1,41,902
earns ₹41,902 · 7.25% a year effective
₹1,00,000 at 7% a year, compounded every day for 5 years, grows to ₹1,41,902: ₹41,902 of interest.
- You put in
- ₹1,00,000
- Interest earned
- ₹41,902
- Effective yearly rate
- 7.25%
- Money doubles in
- 9.9 years
Daily compounding adds ₹139 over monthly and ₹1,647 over yearly compounding at the same rate.
How it grows
Move along the chart to read any year. Flags mark the milestones.
What it is made of
Point at a part to see it on its own.
From your numbers
Worked out from what you entered. Try one.
- Adding ₹100 a day would make it ₹3,60,433, about ₹2,18,531 more.
- At this rate your money doubles every 9.9 years.
- Interest from savings and deposits is taxed at your slab rate. In the 20% slab you would keep about ₹33,522 of the ₹41,902 (cess left out).
Milestones
When your money passes each mark.
- ₹1,000 earnedby year 1 · balance ₹1,07,250
- ₹1 lakh earnednot within 5 years
- Money doublednot within 5 years
The daily edge
Your starting amount at the same yearly rate, compounded less often.
Year by year
Always open. Point at a row to find it on the chart.
| Year | Put in | Interest | Balance |
|---|---|---|---|
| Year 1 | ₹1,00,000 | ₹7,250 | ₹1,07,250 |
| Year 2 | ₹1,00,000 | ₹15,026 | ₹1,15,026 |
| Year 3 | ₹1,00,000 | ₹23,365 | ₹1,23,365 |
| Year 4 | ₹1,00,000 | ₹32,309 | ₹1,32,309 |
| Year 5 | ₹1,00,000 | ₹41,902 | ₹1,41,902 |
Full breakdown
- You put in
- ₹1,00,000
- Interest earned
- ₹41,902
- Effective yearly rate
- 7.25%
- Money doubles in
- 9.9 years
Guide
What daily compounding means
Compound interest is interest on interest. With daily compounding, each day's interest is added to the balance, and the next day's interest is worked out on that bigger balance. Over a year that is 365 small steps instead of one big one.
The yearly rate you are quoted (say 7%) is the nominal rate. Because interest is added daily, what you actually get over a year is a little more: the effective yearly rate, also called APY. At 7% compounded daily, it is about 7.25%. The tool shows this as "Effective yearly rate".
In India, banks have worked out savings account interest on the daily closing balance since 1 April 2010, under an RBI rule that replaced the old "minimum balance from the 10th to the end of the month" method. The interest is worked out daily but credited to your account every few months. Credit cards work the other way round: interest is charged daily on the dues once you lose the interest-free period, which is why an unpaid bill grows so fast.
Shankaran Pillai's two numbers
Shankaran Pillai runs a small shop in Kallakurichi. He has ₹1 lakh in a deposit that pays 7% a year, compounded daily. In 5 years it grows to about ₹1,41,900: roughly ₹41,900 of interest. Compounded only once a year, the same deposit would give about ₹1,40,255, so daily compounding is worth about ₹1,650 to him (and about ₹140 more than monthly compounding).
His nephew Divya in Salem left a credit card bill of ₹50,000 unpaid. Her card charges 3.75% a month, which is 45% a year. With interest charged every day, in 6 months she owes about ₹62,650. Each extra day costs her about ₹60, and that is before late fees and GST.
| Situation | Rate | Time | End amount |
|---|---|---|---|
| Shankaran's deposit | 7% a year | 5 years | about ₹1,41,900 |
| Divya's card dues | 3.75% a month | 6 months | about ₹62,650 |
The same maths works for both. When it works for you, it is slow and steady; when it works against you, it is fast.
How to use this tool
- Pick My money for savings or a deposit, or A debt for card dues.
- Type the starting amount, the yearly rate and the years.
- Turn on More options if your rate is given a month (card statements) or a day (traders), to add months and days, or to count 365 days (Indian banks), 360 (some foreign banks) or trading days (about 250 a year).
- Turn on Regular top-ups to add a fixed amount every day or month, or new spends on a card.
The chart, the table and the milestones then show the balance over time. The "daily edge" bars compare daily compounding with monthly, quarterly, yearly and simple interest at the same rate.
The 1% a day dream
Many people search for "1% a day compounding" after seeing trading or crypto posts. Over about 250 trading days, 1% a day turns ₹10,000 into about ₹1.2 lakh in one year: an effective rate of about 1,100% a year. Over a full 365 days it is about 3,700%. No fund, bank or honest scheme gives this steadily. Indian equity funds have averaged about 12–15% a year over long periods, and they fall in some years. If anyone promises a fixed daily return, treat it as a warning sign.
Common mistakes
- Comparing a monthly card rate with a yearly loan rate. 3.75% a month is 45% a year before compounding. Convert before you compare.
- Expecting a big daily edge. At normal rates, daily compounding adds only a little over monthly compounding. The rate and the time matter far more.
- Forgetting tax. Interest on savings and deposits is taxable at your slab rate.
- Counting the interest-free period on a card. It disappears once you carry a balance, and interest is charged from the date of each spend.
Rates and rules quoted here were checked in October 2026. This tool is a guide, not financial advice.
Sources
Facts checked 19 Oct 2026RBIMaster Circular: Interest Rates on Rupee Deposits (RBI/2012-13/75) · Reserve Bank of India2012
Banks calculate savings account interest on a daily product basis from 1 April 2010. 2 Jul 2012
RBIMaster Direction: Credit Card and Debit Card – Issuance and Conduct Directions, 2022 (RBI/2022-23/92) · Reserve Bank of India2022
If the full bill isn't paid, the interest-free period is lost and interest may be charged from the date of each spend; late fees only on the unpaid amount, after more than 3 days past due. 21 Apr 2022, updated 7 Mar 2024
SBICMost Important Terms and Conditions · SBI Card2026
A typical card rate: finance charges of 3.75% a month (45% a year) on unsecured cards, from the date of transaction. checked 18 Oct 2026
Questions
How is daily compound interest worked out?
Each day, the balance grows by the yearly rate divided by the days in a year (365 in India). The new balance earns interest the next day, and so on: final amount = amount × (1 + rate ÷ 365) ^ days.
Is daily compounding much better than monthly?
Only a little at normal rates. ₹1 lakh at 7% for 5 years earns about ₹140 more compounded daily than monthly. The rate and the time make the real difference.
Do Indian savings accounts compound daily?
Banks work out savings interest on your daily closing balance (RBI rule from 1 April 2010) and credit it every few months, so the interest itself compounds each time it is credited.
How much does an unpaid credit card bill grow?
At a typical 3.6–3.75% a month, charged daily, card dues grow by about 43–45% a year plus fees and GST. ₹50,000 left for 6 months becomes about ₹62,650 in interest terms alone.
What does 1% a day mean in a year?
About 1,100% over 250 trading days, or about 3,700% over 365 days. No real investment gives this steadily.
What is APY or the effective yearly rate?
It is what the balance actually grows by in a year once compounding is counted. 7% a year compounded daily is about 7.25% effective.