Daily Interest Calculator





Formula

To calculate daily interest:

\[ DI = \frac{LB \times AIR}{365} \]

Where:

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. 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.

Example Calculation

Let's assume the following values:

Step 1: Multiply the loan balance by the annual interest rate:

\[ LB \times \frac{AIR}{100} = 1000 \times 0.05 = 50 \]

Step 2: Divide the result by 365:

\[ DI = \frac{50}{365} = 0.14 \text{ dollars per day} \]