About Daily Interest Calculator (Formula)
The Daily Interest Calculator is a tool used to calculate the daily interest on a loan or mortgage. It helps borrowers estimate the amount of interest that accrues each day based on the loan balance, loan length in years, and the annual interest rate.
Formula: The calculator uses the following formula to determine the daily interest:
Daily Interest = (Loan Balance * Annual Interest Rate) / (365 * 100)
The loan balance represents the amount of money owed, the annual interest rate is the interest rate expressed as a percentage per year, and 365 represents the number of days in a year.
By inputting the loan balance, loan length, and annual interest rate into the calculator, users can obtain the daily interest amount. This information can be valuable for financial planning, budgeting, and understanding the cost of borrowing over time.
Note: The calculator assumes a standard 365-day year and does not account for leap years. Additionally, the formula calculates the daily interest as a decimal value, which is then multiplied by 100 to convert it into a percentage for display.