Per Diem Interest Calculator





Formula

The formula to calculate the per diem interest is:

\[ DI = \frac{AR}{365} \times P \]

Where:

What is Per Diem?

Per diem typically refers to the daily amount paid on a loan or mortgage. It comes from the Latin term "per diem," which means "by the day."

Example Calculation

Example 1:

Step 1: Calculate the per diem interest:

\[ DI = \frac{5}{365} \times 10,000 \approx 1.37 \text{ dollars per day} \]

Example 2:

Step 1: Calculate the per diem interest:

\[ DI = \frac{3}{365} \times 15,000 \approx 1.23 \text{ dollars per day} \]