Student Loan Interest Calculator

Formulas

The formulas used in the calculations are:

$\text{Daily Interest Rate} = \frac{\text{Annual Interest Rate}}{365}$

$\text{Daily Accrued Interest} = \text{Loan Amount} \times \text{Daily Interest Rate}$

$\text{Monthly Interest Payment} = \text{Daily Accrued Interest} \times \text{Number of Days in a Month}$

Description

This calculator computes the daily interest rate, daily accrued interest, and monthly interest payment based on the input values of loan amount, annual interest rate, and loan term.

Example Calculation

Let's assume the following:

Loan Amount: $10,000
Annual Interest Rate: 6%
Loan Term: 10 years

First, calculate the daily interest rate:

$\text{Daily Interest Rate} = \frac{0.06}{365} = 0.000164$

Calculate the daily accrued interest:

$\text{Daily Accrued Interest} = 10,000 \times 0.000164 = 1.64$

Calculate the monthly interest payment for a 31-day month:

$\text{Monthly Interest Payment} = 1.64 \times 31 = 50.84$

Therefore, the daily interest rate is 0.000164, the daily accrued interest is $1.64, and the monthly interest payment for a 31-day month is $50.84.