Enter the sum of daily balances ($) and the number of days in the period into the Calculator. The calculator will evaluate the Average Daily Balance.

## Average Daily Balance Formula

ADB = SDB / D

Variables:

- ADB is the Average Daily Balance ($/day)
- SDB is the sum of daily balances ($)
- D is the number of days in the period

To calculate Average Daily Balance, divide the sum of all daily balances by the number of days in the period.

## How to Calculate Average Daily Balance?

The following steps outline how to calculate the Average Daily Balance.

- First, determine the sum of daily balances ($).
- Next, determine the number of days in the period.
- Next, gather the formula from above = ADB = SDB / #D.
- Finally, calculate the Average Daily Balance.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

sum of daily balances ($) = 500,000

number of days in the period = 30