• SDB is the sum of daily balances ($) • D is the number of days in the period To calculate Average Daily Balance, divide the sum of all daily balances by the number of days in the period. ## How to Calculate Average Daily Balance? The following steps outline how to calculate the Average Daily Balance. 1. First, determine the sum of daily balances ($).
2. Next, determine the number of days in the period.
3. Next, gather the formula from above = ADB = SDB / #D.
4. Finally, calculate the Average Daily Balance.
5. 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