$1,000 at 5% Compounded Daily for 1 Year
Future Value
$1,051
Total Interest
$51
Total Invested
$1,000
Principal: $1,000
Rate: 5%
Period: 1 years
Compounding: daily
Year-by-Year Breakdown
| Year | Balance | Interest | Contributions |
|---|---|---|---|
| 1 | $1,051 | $51 | $1,000 |
A one-time investment of $1,000 at 5% compounded daily grows to $1,051 in 1 years. That's $51 in interest — a 5% total return.
Key Insights
- At 5%, your money doubles roughly every 14 years (Rule of 72).
- The effective annual rate (APY) with daily compounding is 5.13% — slightly better than the nominal 5% APR.
- Daily compounding earns $1 more than annual compounding over this period.
Want to adjust these numbers? Open this scenario in the calculator to change the rate, time period, or add contributions.