Enter a loan balance or principle, the total length of the loan, and the annual interest rate (%) to calculator the daily interest owed on the loan.
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Daily Interest Formula
The following formula is used by the calculator above to determine the daily interest of a loan or mortgage.
DI = LB X AIR / 365
- Where DI is the daily interest ($)
- LB is the loan balance ($)
- AIR is the annual interest rate
- 365 is the number of days in a year
This formula calculates the total interest you would pay each day on a loan throughout its lifetime. This will not equal your actual payments since that is most often paid in terms of months.
Daily Interest Definition
Daily interest is the average daily interest paid on a loan or credit based on the annual interest rate and total loan balance.
How to calculate daily interest?
How to calculate daily interest?
- First, determine the loan balance.
Determine the total loan balance for 1 year. It’s important to note that this is the annual loan balance and not the overall loan balance.
- Next, determine the annual interest rate.
Calculate or determine the annual interest rate.
- Finally, calculate the daily interest.
Using the formula above, calculate the daily interest.
FAQ
Daily interest is the average daily interest paid on a loan or credit based on the annual interest rate and total loan balance.
