$5,000 at 5% Compounded Daily for 5 Years
Future Value
$6,420
Total Interest
$1,420
Total Invested
$5,000
Principal: $5,000
Rate: 5%
Period: 5 years
Compounding: daily
Year-by-Year Breakdown
| Year | Balance | Interest | Contributions |
|---|---|---|---|
| 1 | $5,256 | $256 | $5,000 |
| 2 | $5,526 | $526 | $5,000 |
| 3 | $5,809 | $809 | $5,000 |
| 4 | $6,107 | $1,107 | $5,000 |
| 5 | $6,420 | $1,420 | $5,000 |
A one-time investment of $5,000 at 5% compounded daily grows to $6,420 in 5 years. That's $1,420 in interest — a 28% 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 $39 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.