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.

## 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

**What is daily interest?**

Daily interest is the average daily interest paid on a loan or credit based on the annual interest rate and total loan balance.