Is daily compounding better?

Yes, marginally — more frequent compounding yields a slightly higher effective rate than the same nominal rate compounded yearly.

What is the Rule of 72?

A quick estimate: doubling time in years ≈ 72 ÷ the annual interest rate percent.

See how money grows with compound interest — any frequency, optional periodic contributions, Rule of 72.

Principal

Annual rate (%)

Years

Compounding

Contribution / period

Final amount

$221,964.02

Total interest

$121,964.02

Contributions

$100,000.00

Doubles in (Rule of 72)

9 yr

Compound interest earns interest on both your principal and previously earned interest. The more frequently it compounds, the faster it grows.

A = P × (1 + r/n)^(n×t) P = principal r = annual rate (decimal) n = compounds per year t = years RULE OF 72: doubling years ≈ 72 ÷ rate%

🔢 Your calculation, step by step:

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Simple interest is charged only on the principal; compound interest is charged on the growing balance, so it pulls ahead more and more over time.

Daily compounding produces slightly more than yearly for the same rate, because interest is added to the balance more often.

Divide 72 by the annual rate to estimate how many years it takes your money to double — e.g. at 8%, about 9 years.