How do you calculate your interest rates?

How do I calculate daily interest rates?

  • Answer:

    Divide the annual interest rate by 365 to calculate the daily interest rate. For example, if your loan has an interest rate of 10.95 percent, you would divide 10.95 by 365 to find the daily interest rate, which would be 0.03 percent.Multiply the balance of your loan by the daily interest rate to determine the amount of interest that will accrue daily. For example, if your loan has a balance of $4,000, you would multiply 0.0003 (0.03 percent) by $4,000 to find that $1.20 of interest would accrue each day.Source:http://www.investopedia.com/terms/a/apr.asp

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