So to my understanding, the daily interest rate formula is (principal X interest rate)/365.
For one of my loans, my principal is $2600, with an interest rate of 5.05%, so the formula is (2600 X .0505)/365 or $0.3597/day.
It's been 6 days since my last payment, so multiply that by 6 to get my current interest balance, which comes to $2.1584.
This all makes sense, HOWEVER, at the end of the day today, my loan has accrued $2.14.
What am I missing. It's not enough for a day to be missing or anything. And my principal is exactly $2600 on the dot.
Edit: updated one of my numbers
Can someone tell me what I'm doing wrong when calculating interest?
byu/beanieweenies551 inStudentLoans
Posted by beanieweenies551
1 Comment
365.25
There may also be a round or floor in the calculation.