A daily rate of 0.05% is an annual rate of 18.25% if you simply multiply by 365 (the APR), or about 20% once each day's interest compounds (the APY). Enter a rate per day, week, month, quarter or year to see it converted to every other period both ways.
Annual rate (APR, simple)
18.25%
Annual yield (APY, compounded)
20.0159%
Per
Simple rate
Compound equivalent
day
0.05%
0.05%
week
0.35096%
0.35149%
month
1.52083%
1.53207%
quarter
4.5625%
4.66699%
year
18.25%
20.01594%
Daily to annual interest rate table
Daily rate
Annual rate (APR, × 365)
Annual yield (APY, compounded daily)
0.01%
3.65%
3.72%
0.02%
7.3%
7.57%
0.03%
10.95%
11.57%
0.05%
18.25%
20.02%
0.1%
36.5%
44.03%
0.2%
73%
107.36%
0.5%
182.5%
517.47%
1%
365%
3678.34%
Annual to daily, weekly and monthly rate table
Annual rate (APR)
Daily
Weekly
Monthly
3%
0.0082%
0.058%
0.25%
5%
0.0137%
0.096%
0.417%
8%
0.0219%
0.154%
0.667%
10%
0.0274%
0.192%
0.833%
15%
0.0411%
0.288%
1.25%
20%
0.0548%
0.385%
1.667%
25%
0.0685%
0.481%
2.083%
The formulas
Simple annual rate (APR) = periodic rate × n, where n is the number of periods in a year (365 days, 52 weeks, 12 months, 4 quarters).
Annual yield (APY) = (1 + periodic rate)n − 1, which counts interest earned on interest.
Periodic rate from APR = APR ÷ n; periodic rate that compounds to a given APY = (1 + APY)1/n − 1.
Worked example
A short-term loan charges 0.1% a day. The simple annual rate is 0.1% × 365 = 36.5%. If the interest is added to the balance every day, $1,000 owed for a year grows to $1,000 × 1.001365 ≈ $1,440.25, an APY of about 44.0%. That gap is why lenders quote the APR and savers look at the APY.
Frequently asked questions
How do I convert a daily interest rate to an annual rate?
Multiply the daily rate by 365 to get the simple annual rate (APR): 0.05% a day × 365 = 18.25%. To include compounding, use APY = (1 + daily rate)^365 − 1, which for 0.05% a day is about 20.0%.
How do I convert an annual interest rate to a daily rate?
Divide the APR by 365: 5% a year is about 0.0137% a day. If you start from an APY and want the daily rate that compounds to it, use (1 + APY)^(1/365) − 1, which for 5% is about 0.01337% a day.
Should I use 365 or 360 days?
Savings accounts and most credit cards in the US use 365 days. Some loans and money-market products use a 360-day year, which makes the daily rate APR ÷ 360 and slightly higher. Check your account agreement.
What is the difference between the simple rate and the compound equivalent?
The simple rate is how a rate is usually quoted: the annual rate divided by the number of periods. The compound equivalent is the per-period rate that, compounded, grows money by exactly the same amount over a year. They differ more as the rate gets higher.
What daily rate is a credit card APR?
Card issuers divide the APR by 365 (sometimes 360) to get the daily periodic rate. A 24% APR is about 0.0658% a day, and because unpaid interest compounds, the effective yearly cost is about 27.1%.