Auto Loan Per Diem Calculator

Calculate Per Diem on an Auto Loan



Formula

To calculate the Per Diem Interest Rate (PDI):

\[ PDI = \frac{I}{365} \]

To calculate the Per Diem Interest Payment Amount (PDP):

\[ PDP = \left( \frac{I}{365} \right) / 100 \times B \]

Where:

What is a Per Diem Auto Loan?

A per diem auto loan is a loan structured so that the interest payments are calculated on a per diem basis. With per diem meaning daily in this case. This is a term often used to describe the daily amount someone would theoretically pay on an auto loan interest if that loan happened to require daily payments. (This is almost never the case).

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ PDI = \frac{5}{365} = 0.013699 \text{ %} \]

\[ PDP = \left( \frac{5}{365} \right) / 100 \times 20000 = 2.74 \text{ dollars} \]

The Per Diem Interest Rate is 0.013699% and the Per Diem Interest Payment Amount is $2.74.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ PDI = \frac{3.5}{365} = 0.009589 \text{ %} \]

\[ PDP = \left( \frac{3.5}{365} \right) / 100 \times 15000 = 1.44 \text{ dollars} \]

The Per Diem Interest Rate is 0.009589% and the Per Diem Interest Payment Amount is $1.44.