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Daily Interest Calculator

Compute the daily interest accrual on a mortgage, credit card, or commercial loan balance. Supports Actual/365, Actual/360, and 30/360 day-count conventions used across consumer and commercial finance.

$
%

Daily interest

$14.76

Total interest

$442.76

Balance after period

$84,943

Daily periodic rate

0.01747

How the math works

Daily interest accrues on the current balance. Mortgages use Actual/365 (or Actual/366 in a leap year). Many commercial loans use Actual/360 — which produces slightly higher effective rates because the same rate spreads over fewer days. 30/360 is the banker's convention used for bonds and some legacy mortgages.

Mortgage per-diem interest at closing is typically calculated Actual/365. Verify the convention on your specific note — it affects closing costs, escrow refunds, and monthly billing at the margins.

How to Use

  1. Enter current balance and annual rate.
  2. Enter number of days in the period.
  3. Select day-count convention — Actual/365 for most mortgages, Actual/360 for many commercial loans.

Frequently Asked Questions

Why does Actual/360 cost more?

Same annual rate divided by 360 days produces a higher daily rate than dividing by 365. Applied to actual days, the total interest over a year is ~1.4% higher. Watch for this on commercial mortgages.

When does 30/360 apply?

Bond markets and some legacy mortgages use 30/360 — assumes each month has 30 days. Simpler calculation, but creates small discrepancies on month-end cash flows.

How is credit card interest calculated?

Average Daily Balance × daily periodic rate × days in cycle. DPR = APR ÷ 365. Paying early in the cycle reduces ADB and interest charged. Paying in full by the due date avoids interest entirely via the grace period.

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