Accrued Interest Calculator

Formula

The formula to calculate accrued interest is:

\[ \text{Accrued Interest} = \text{Principal} \times \text{Interest Rate} \times \frac{\text{Days}}{360} \]

Where:

$ \text{Principal} $ is the initial amount of the loan or investment.
$ \text{Interest Rate} $ is the annual interest rate (expressed as a decimal).
$ \text{Days} $ is the number of days for which the interest is being calculated.

Example

Let's say the principal is \$1,000, the annual interest rate is 5%, and you want to calculate the interest accrued over 30 days. Using the formula:

\[ \text{Accrued Interest} = 1000 \times 0.05 \times \frac{30}{360} = 4.17 \]

So, the accrued interest is \$4.17.

What is Accrued Interest?

Accrued interest is the interest that has accumulated on a loan or investment but has not yet been paid. It is calculated based on the principal amount, the interest rate, and the time period over which the interest has accrued.