Compounding Frequency Calculator
Under the same nominal APR, compare end values when compounding yearly, monthly and daily.
Results
Fill in the inputs and click Calculate.
- Yearly Compounded
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- Monthly Compounded
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- Daily Compounded
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- Daily vs Yearly Gap
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Risk disclaimer
Pure compounding math; volatility and venue rules change real returns.
Does frequency really matter?
End value = principal × (1 + APR÷m)^(m×years): bigger m compounds more.
At typical APRs the yearly-vs-daily gap is modest, but it grows over time.
How to use
- Enter the principal.
- Enter the nominal APR (%) and years.
- Click Calculate to compare the three frequencies.
Formula
- Yearly = P × (1 + APR)^years
- Monthly = P × (1 + APR÷12)^(12×years)
- Daily = P × (1 + APR÷365)^(365×years)
Example
10,000 at 10% APR for 1 year → 11,000 yearly, 11,047.13 monthly, 11,051.56 daily.
Same nominal APR, more frequent compounding pays more.
FAQ
Is platform APR already compounded?
Most platforms quote nominal APR; your real return depends on their compounding — APY is the compounded figure.