Home
Back
Daily Repayment Formula:
| From: | To: |
The Daily Interest Calculator Loan Repayment helps determine the daily payment amount for a loan that includes both principal repayment and daily interest charges. This is particularly useful for short-term loans or loans with daily compounding interest.
The calculator uses the daily repayment formula:
Where:
Explanation: The formula calculates the daily payment by dividing the principal equally over the repayment period and adding the daily interest charge.
Details: Understanding daily repayment amounts helps borrowers plan their cash flow, budget effectively, and avoid missed payments. It's essential for managing short-term financing and understanding the true cost of daily interest loans.
Tips: Enter the total loan principal in dollars, the number of days for repayment, and the daily interest amount. All values must be positive numbers with principal and days greater than zero.
Q1: What types of loans use daily repayment calculations?
A: This calculation is commonly used for payday loans, short-term business loans, merchant cash advances, and some personal lines of credit that charge daily interest.
Q2: How is daily interest different from APR?
A: Daily interest is the actual dollar amount charged per day, while APR (Annual Percentage Rate) expresses the cost as a yearly rate. To compare loans, convert daily rates to APR for accurate comparison.
Q3: Can this calculator handle variable interest rates?
A: This calculator assumes a fixed daily interest amount. For variable rates, you would need to calculate each day's interest separately based on the changing rate.
Q4: What if I want to make extra payments?
A: Extra payments would reduce the principal faster, which would decrease both the remaining term and the total interest paid. This calculator shows the scheduled payment amount without extra payments.
Q5: Are there any fees included in this calculation?
A: This calculation only includes principal repayment and daily interest. Additional fees (origination fees, late fees, etc.) would need to be added separately to get the total cost of the loan.