Use our interest-per-day calculator to calculate the interest or rate per day on a loan.
Below you’ll find more info about how this calculator works. More specifically, you’ll discover how to use this calculator and how to calculate interest per day on a loan using the corresponding formulas.
Be aware that, to use the formulas, you’ll need to know how to convert from percentage to decimal, for which our decimal to percent converter can be really helpful.
How to use the interest per day calculator
If you are unsure how to calculate interest per day on a loan using this calculator, follow these steps:
- Enter the loan balance 🔢. This is the amount you currently owe.
- Enter the annual interest rate stated in your loan agreement 🔢.
- Check the interest calculated per day.
- Check the equivalent interest rate per day calculated ✅.
The calculator works in various ways, so you can compute any variable you want as long as you apply two inputs to it.
Also be aware that this calculator relies on a simple interest calculation. If you want to explore the more complex type of interest, visit the compound interest calculator.
How to calculate interest rate per day
For a simple interest scenario, the daily interest rate is the annual interest rate divided by the number of days used in the year:
Daily interest rate = Annual interest rate / 365
As an example, let’s convert a 4% annual interest to its equivalent daily interest rate:
Daily interest rate = 4% / 365 = 0.010958%
FAQs
How do I calculate interest per day on a loan?
To calculate interest per day on a loan:
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Determine the interest rate per day.
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Determine the loan balance (the amount you currently owe).
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Multiply both quantities:
Interest per day = Loan balance × Interest rate per day(The interest rate per day must be expressed as a decimal instead of a percentage.)
As an example, let's compute how much interest 1 million dollars earns per day, at 4% annually:
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Interest rate per day is 4% divided by 365, which is 0.010958%.
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Loan balance: $1,000,000.
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Applying the interest per day formula:
Interest per day = $1,000,000 × 0.010958% = $109.59
What’s the interest per day for a 500k and 4% interest per year loan?
$54.79 interest per day, corresponding to a 0.01096% daily interest rate. We calculate it the following way:
Daily interest rate = 4% / 365 = 0.010958%
Daily interest = $500,000 × 0.010958% = $54.79
How much interest does 1 billion dollars earn per day?
The answer to how much interest 1 billion dollars earns per day depends on the account’s interest rate.
- Typical savings accounts have an average yield of 0.61%. This is equivalent to a daily interest rate of 0.0016712% and $16,712 in interest per day.
- If you put the money in a competitive high-yield savings account paying around 4% annually, it’ll produce much more: around $109,589 in interest per day with a daily interest rate of 0.01096%