Daily Compound Interest Calculator
Daily Compound Interest Calculator calculates the daily compound interest for the given values. Compound interest is an interest accumulated on the principal and interest together over a given time period.
What is Daily Compound Interest Calculator?
Daily Compound Interest Calculator is an online tool that helps to calculate the daily compound interest for the given values. This online daily compound interest calculator helps you to calculate the daily compound interest in a few seconds. To use this daily compound interest calculator, enter the values in the given input box.
How to Use Daily Compound Interest Calculator?
Please follow the steps below to find the daily compound interest using an online daily compound interest calculator:
- Step 1: Go to Cuemath’s online daily compound interest calculator.
- Step 2: Enter the principal amount, interest rate, and the number of years in the given input box of the daily compound interest calculator.
- Step 3: Click on the "Calculate" button to calculate the daily compound interest for the given values.
- Step 4: Click on the "Reset" button to clear the fields and enter the new values.
How Daily Compound Interest Calculator Works?
Compound interest is the interest paid on both principal and interest, compounded at regular intervals. Compound Interest = Interest on Principal + Compounded
Interest at Regular Intervals. The compound interest is calculated, after calculating the total amount over a period of time, based on the rate of interest, and the initial principal. The formula to calculate the daily compound interest is given by
Daily compound interest = Principal amount(1 + (interest rate/365)365 × time - principal amount
Let us understand this with the help of the following example.
Solved Example on Daily Compound Interest
Rs 5000 is borrowed from John, and the interest rate is 5%. What is the daily compound interest for 3 years and verify it using the daily compound interest calculator?
Solution:
Given: Principal Amount = 5000, interest rate = 5%, and time in years = 3
Daily compound interest = Principal amount(1 + (interest rate/365)365 × time - principal amount
= 5000(1 + (5 / 365 × 100)365 × 3 - 5000
= Rs 809.111
Now, try the daily compound interest calculator and find the daily compound interest for:
- Principal amount = 34500, interest rate = 10%, and number of years = 3
- Principal amount = 4500, interest rate = 6%, and number of years = 4