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.


  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