Discover how to calculate accrued interest on loans and credit cards. Learn about rates, daily balances, and precision methods for accurate calculations.

To calculate accrued interest for a changing balance, you can use the above formulas along with your average daily balance , which can be found using the following method.

Calculating monthly accrued interest To calculate the monthly accrued interest on a loan or investment, you first need to determine the monthly interest rate by dividing the annual interest rate ...

Next, multiply this rate by the number of days for which you want to calculate the accrued interest. Finally, multiply by the account balance in order to determine the accrued interest.