With our interest-per-day calculator, you can easily calculate the daily interest on a loan. Simply enter the loan amount and the interest rate to see the interest per day.
Interest Per Day Calculator
Calculate your daily and yearly interest cost based on loan amount and interest rate.
Enter loan amount and interest rate to calculate.
How to Calculate Interest Per Day
When you borrow money or lend money, interest is usually expressed as an annual percentage rate (APR). However, in many real-world situations it can be helpful to know the interest cost per day. For example, if you are paying off a loan early, delaying a payment, or calculating the cost of borrowing over a short period of time, daily interest can give you a clearer picture of how much the loan actually costs. The interest per day calculator above helps you quickly estimate both the daily interest cost and the total interest per year based on a loan amount and an annual interest rate.
The Formula for Interest Per Day
The calculation used in the calculator is simple and widely used in finance. It is based on the idea that interest accrues evenly across the year.
First, the yearly interest is calculated:
Yearly Interest = Loan Amount × (Interest Rate ÷ 100)
For example, if you borrow 10,000 with an annual interest rate of 5%, the yearly interest would be:
10,000 × 0.05 = 500 per year
Next, the yearly interest is divided by the number of days in a year:
Daily Interest = Yearly Interest ÷ 365
Using the same example:
500 ÷ 365 = 1.37 per day
This means that each day the loan remains unpaid, approximately 1.37 in interest is added.
How the Calculator Works
The calculator above automates this process so you don’t have to do the math manually.
To use it, simply follow these steps:
- Enter the loan amount.
This is the total amount of money borrowed or lent. - Enter the annual interest rate.
This should be the yearly rate expressed as a percentage. - Click Calculate.
The calculator will then display:
- Interest per day – the estimated amount of interest accumulated each day.
- Interest per year – the total interest cost over one full year.
The results are shown without a currency symbol so the calculator can be used globally regardless of whether you are thinking in dollars, euros, pounds, kronor, or any other currency.
What You Can Use This Calculator For
Knowing the daily interest cost can be useful in several situations:
Loan planning
Before taking a loan, calculating the daily interest can help you understand the true cost of borrowing.
Early loan repayment
If you are considering paying off a loan earlier than planned, daily interest helps estimate how much interest you save for each day you shorten the loan.
Short-term borrowing
Some loans or credit arrangements are only used for a few days or weeks. In these cases, daily interest gives a much clearer picture than the annual rate alone.
Financial comparisons
You can compare different loan options by calculating their daily interest cost. Even small differences in interest rates can lead to noticeable changes over time.
Understanding how interest accumulates
Seeing interest expressed per day helps illustrate how borrowing costs grow continuously over time.