Compound Daily Interest Calculator

Calculate exact compounding interest on overdue payments, trade debts, and investments with BharatUtility's Daily Compound Interest Calculator. Supports daily, monthly, and quarterly compounding frequencies.

Interactive Compound Daily Interest Calculator
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Formula & Calculation Methodology

A = P × (1 + r/n)^(n × t) where n is compounding frequency (365 for daily) and t is duration in years.

Step-by-Step Worked Example

Principal: ₹1,00,000 | Rate: 12% p.a. | Duration: 90 Days | Daily Compounding

  1. Daily Rate (r/365) = 12% ÷ 365 = 0.03287% per day
  2. Maturity Balance after 90 Days = ₹1,03,003
  3. Total Interest Accumulated = ₹3,003 (~₹33.37 / day)
Result: Principal: ₹1,00,000 | Total Interest: ₹3,003 | Final Balance: ₹1,03,003

Daily Compounding in Trade Invoices & MSME Act

Under the MSME Development Act, 2006, delayed payments beyond 45 days attract compound interest with monthly rests at three times the RBI bank rate.

Frequently Asked Questions

How is daily compound interest calculated?

Each day, interest is calculated on the principal plus previously accumulated interest, accelerating growth compared to simple interest.

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