Daily Interest Calculator

Last updated: February 28, 2026
Reviewed by: LumoCalculator Team

Calculate interest earned or accrued on a daily basis. Perfect for savings accounts, certificates of deposit, money market accounts, loans, and credit card balances. Supports both simple and compound interest with multiple day count conventions.

Daily Interest

Calculate interest earned per day

Quick Examples:

Formula:

Daily Interest = P x (r / days_in_year)

Interest Calculation Results

Daily Interest
$1.37
per day at 0.013699% daily rate
Total Interest (30 days)
$41.10
Ending Balance
$10,041.10
Rate Details
Annual Rate5%
Daily Rate0.013699%
Period Rate (30d)0.4110%
Effective Annual5.0000%
Simple vs Compound
Simple
$41.10
Compound
$41.18
Difference
$0.08

Detailed Breakdown

Interest Schedule (First 30 Days)
DayInterestCumulativeBalance
1$1.3699$1.37$10001.37
2$1.3699$2.74$10002.74
3$1.3699$4.11$10004.11
4$1.3699$5.48$10005.48
5$1.3699$6.85$10006.85
6$1.3699$8.22$10008.22
7$1.3699$9.59$10009.59
8$1.3699$10.96$10010.96
9$1.3699$12.33$10012.33
10$1.3699$13.70$10013.70
Summary
Principal$10,000.00
Days30
ConventionActual/365 (Fixed)
TypeSimple Interest
Interpretation

A $10,000.00 deposit at 5% annual rate earns $1.37 per day. Over 30 days, you'll earn $41.10 in simple interest, resulting in an ending balance of $10,041.10.

Editorial & Review Information

Reviewed on: 2026-02-27

Published on: 2025-12-04

Author: LumoCalculator Editorial Team

Editorial review: We reviewed formula logic, day-count explanations, and source reliability to keep this page clear for practical planning use.

Purpose and scope: This calculator supports educational estimation and planning for deposits, savings, and borrowing scenarios. It is not a loan contract, rate quote, or regulatory disclosure.

Financial Disclaimer

Results are model estimates. Actual interest charged or paid can differ due to lender-specific contracts, billing cycles, compounding policy, fees, grace-period rules, and jurisdictional disclosure requirements.

Use Scenarios

Savings projection

Estimate how much interest a balance may generate over a short holding period before moving funds.

Loan accrual check

Compare expected daily accrual with statement figures to understand the impact of timing and payment dates.

Convention comparison

Test Actual/365 vs Actual/360 to see how day-count conventions can change accrued interest for the same nominal annual rate.

Formula Explanation

Simple daily interest

Interest = P x (r / D) x d

  • P: principal balance
  • r: annual nominal rate (decimal form)
  • D: day-count denominator (365, 366, or 360)
  • d: number of accrual days

Daily compounding model

A = P x (1 + r / D)^d

Compound mode applies interest on principal plus prior accrued interest. For short periods, the difference versus simple mode is usually modest but grows with time and rate.

Effective annual rate context

EAR = (1 + r / D)^D - 1

EAR provides a comparable annualized rate that includes compounding effects and helps normalize offers with different compounding frequencies.

Example Cases

Case 1: Savings accrual

Principal $12,000, annual rate 4.8%, 45 days, Actual/365, simple mode. Estimated interest = 12,000 x (0.048 / 365) x 45 = $71.01.

Case 2: Revolving balance

Principal $3,500, annual rate 22%, 30 days, Actual/365, simple proxy. Estimated accrual = 3,500 x (0.22 / 365) x 30 = $63.29.

Case 3: Convention impact

Principal $50,000, annual rate 5.2%, 90 days. Actual/365 simple interest = $641.10; Actual/360 simple interest = $650.00; difference = $8.90.

Boundary Conditions

Inputs assume a non-negative principal and annual nominal rate; invalid or negative values are outside scope.
The model excludes fees, promotional periods, minimum finance charges, and penalty-rate clauses.
Day-count choice can materially change outcomes; if your statement contract uses a different convention, use that contract convention.
Daily compounding here is a simplified educational model and may differ from issuer billing methods such as average daily balance or cycle-end posting.
Date-based accrual in real products may include contractual cutoffs, posting delays, or leap-year handling that are not fully replicated here.
Use this output for education and planning; final borrowing or deposit decisions should rely on institution disclosures and account agreements.

Typical Interest Rates by Product

ApplicationTypical RateConvention
Savings Account0.5% - 5%Actual/365
Money Market4% - 5.5%Actual/360
Certificate of Deposit4% - 5.5%Actual/365
Credit Card15% - 25%Actual/365
Personal Loan6% - 15%Actual/365
Treasury Bills4% - 5.5%Actual/360

Day Count Conventions Explained

Actual/365

Standard for many savings and lending products. Divides annual rate by 365 days.

Actual/360

Common in some money-market contexts. Produces slightly higher accrual for the same annual nominal rate.

Actual/366

Used in leap-year precision contexts where day-level accuracy is required.

30/360

Bond-style convention that normalizes each month to 30 days for simplified accrual math.

Sources & References

Frequently Asked Questions

How is daily interest calculated?
Use the principal, annual nominal rate, day-count basis, and number of days. Simple mode: Interest = P x (r / D) x d Compound mode: A = P x (1 + r / D)^d, Interest = A - P Example: P=$10,000, r=5%, d=30, D=365 gives about $41.10 in simple interest.
Which day-count convention should I use?
Use the same convention as your contract or statement. - Actual/365: common for many consumer products - Actual/360: common in some money-market contexts - Actual/366: leap-year precision cases - 30/360: bond-style accrual conventions If you are unsure, start with Actual/365 and then compare with Actual/360 as a sensitivity check.
Why does Actual/360 usually produce higher interest than Actual/365?
With the same annual nominal rate, dividing by 360 creates a larger daily rate than dividing by 365. Approximate factor: (365 / 360) = 1.0139 So Actual/360 is often about 1.39% higher accrual than Actual/365 for the same period and balance.
How do credit cards apply daily interest in practice?
Cards typically convert APR to a daily periodic rate and apply it to daily balance logic. Common flow: 1) Daily rate = APR / 365 2) Interest is calculated from daily or average daily balance 3) Interest is posted to the statement and can compound if unpaid Your issuer agreement controls details such as grace period, balance method, and posting rules.
How does savings daily accrual differ from monthly payout?
Many accounts accrue interest daily but credit it monthly. That means: - Interest is tracked day by day on balance - You may not see it in available balance until posting date - After posting, future accrual may include that posted interest (compounding effect) Always check the account disclosure for minimum balance and posting policy.
When should I use Simple mode vs Compound mode in this tool?
Use Simple mode for straight-line accrual estimates and quick checks. Use Compound mode when interest is added to balance and future interest is calculated on the growing balance. If your product terms are unclear, compare both outputs and treat the gap as a planning range.
What does effective annual rate (EAR/APY) tell me?
EAR (or APY for deposit products) converts compounding effects into one annualized rate. Use it to compare products with different compounding rules on an apples-to-apples basis. Higher EAR is better for savings returns; lower EAR is better for borrowing cost.