Daily Savings Account Interest Calculator
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Reviewed by Calculator Editorial Team
Calculate the interest earned on a daily savings account with our free online calculator. This tool helps you understand how daily interest compounds over time and compare different deposit terms.
How to Use This Calculator
To calculate your daily savings account interest:
- Enter the principal amount (initial deposit)
- Select the daily interest rate (APR divided by 365)
- Choose the number of days the money will be in the account
- Click "Calculate" to see your results
The calculator will show you the total interest earned and the final amount in your account after the specified period.
Formula Explained
The daily interest calculation uses the simple interest formula:
Interest = Principal × (Daily Rate × Days)
Where:
- Principal - The initial amount of money
- Daily Rate - The daily interest rate (APR ÷ 365)
- Days - The number of days the money is in the account
The final amount is calculated by adding the interest to the principal.
Worked Example
Let's calculate the interest for $1,000 deposited at a 2% APR (0.02 ÷ 365 ≈ 0.0005479 daily rate) for 90 days:
Interest = $1,000 × (0.0005479 × 90)
Interest = $1,000 × 0.049311
Interest = $49.31
Final Amount = $1,000 + $49.31 = $1,049.31
This example shows how daily interest compounds over time, even with a relatively short deposit period.
Comparison Table
Compare different deposit terms with the same principal amount:
| Principal | APR | Days | Daily Rate | Interest Earned | Final Amount |
|---|---|---|---|---|---|
| $1,000 | 2% | 30 | 0.0005479 | $16.44 | $1,016.44 |
| $1,000 | 2% | 90 | 0.0005479 | $49.31 | $1,049.31 |
| $1,000 | 2% | 180 | 0.0005479 | $98.62 | $1,098.62 |
| $1,000 | 3% | 90 | 0.0008219 | $73.97 | $1,073.97 |
This table demonstrates how longer deposit periods and higher interest rates increase the total interest earned.
Frequently Asked Questions
What is the difference between APR and daily interest rate?
The Annual Percentage Rate (APR) is the yearly interest rate. The daily interest rate is calculated by dividing the APR by 365 to get the daily rate.
How does daily interest compound?
Daily interest compounds by being added to the principal each day, increasing the amount available for the next day's interest calculation.
Is this calculator accurate for all savings accounts?
This calculator uses simple interest, which is common for short-term savings accounts. Some accounts may use compound interest, which would require a different calculation method.