Based on the interest rate and total annual loan amount, the daily loan is the amount you must pay. You can create one daily loan interest calculator in Excel. Following that, all you have to do is enter the interest rate and the total loan amount for the year. Based on the input data, the calculator will immediately calculate the daily loan interest amount. This article will teach you how to quickly and easily create an Excel daily loan interest calculator.
What Is Daily Loan Interest?
The amount of interest that must be paid daily on a loan or credit is determined by the annual interest rate and the loan amount. Simply divide the annual loan interest by 365 to obtain the daily loan interest from the annual loan interest.
Daily Loan Interest Formula
The following formula is used to determine the daily interest on a loan or mortgage:
Based on the input data, the aforementioned formula will return the total daily loan interest amount.
Here is one thing to remember. That is the annual loan balance may not be equal to the total loan balance. Be aware of that. In the Daily Loan Interest Calculator, you are allowed to insert only the annual loan balance but not the total loan balance.
Create a Daily Loan Interest Calculator in Excel
Allocate two cells for the annual loan balance and the annual interest rate because they are needed to calculate the daily loan interest.
Set a cell as the location for the daily loan interest return. I’ve chosen cell D7 for this instance.
Next, enter the formula shown below into cell D7 to determine the daily loan interest.
❸ To execute the above formula, press the ENTER button.
Therefore, to calculate the daily loan interest, use the calculator above.
The only thing left to do is enter the annual loan balance and annual interest rate in cells D4 and D5 the following time. And then you are ready to go.
An Example of the Application of the Daily Loan Interest Calculator in Excel
Let’s say you obtained a $5,000,000 loan from bank X for a period of one year. You must annually pay 12% interest on the loan amount. What is the current amount of the daily loan interest that you must repay in order to recoup the loaned funds?
In the above problem,
The annual loan balance is $5,000,000.
The annual interest rate is 12%.
Now, if we enter these two pieces of information into the daily loan interest calculator we created, we can quickly determine how much daily loan interest you must pay.
❶ Insert the annual loan balance amount i. e. $5,000,000 in cell D4.
❷ Then again insert the annual interest rate i. e. 12% in cell D5.
You will then see that the daily loan interest has already been calculated for you. Which is $1,644.
Learn more about making a free late payment interest calculator in Excel.
Daily Compound Loan Interest Calculator in Excel
To determine the daily compound loan interest, you must understand:
The formula to calculate the compound loan interest is,
A is the total sum that must be repaid.
P = Total Loan Amount
r = Annual Interest Rate
n= Payment Frequency
t= Period of loan
In the calculator below, you need to insert,
❶ Total Loan Amount in cell C4.
❷ Annual Interest Rate in cell C5.
❸ Period of the loan in cell C6.
❹ Payment frequency in cell C9.
Once you’ve entered everything, cell C14 will display the monthly payment amount, and cell C15 will display the calculated daily compound loan interest.
To Create the daily compound loan interest calculator,
Set aside cells for the Total Loan Amount, Annual Interest Rate, Loan Term, and Annual Payments I’ve used cells C4, C5, C6, and C11 in this case, respectively.
Next, enter the following formula in cell C14 to determine the amount of the monthly payment.
Formula Breakdown
After that, enter the formula below into cell C15 to obtain the daily compound loan interest.
❹ Finally press the ENTER button.
Similar Readings
Create a Monthly Loan Interest Calculator in Excel
You can use the following formula in Excel to determine the monthly loan interest:
Now to create a Monthly Loan Interest Calculator,
To store the annual loan balance and annual interest rate, choose two cells.
Then select a different cell to return the monthly loan interest to. I’m choosing cell D7 for this instance.
❸ After that, insert the following formula in cell D7.
❹ Now press the ENTER button to execute the formula.
So this is your monthly loan interest calculator. It only requires that you enter the annual loan balance and the annual interest rate. Then you are ready to go.
Read more: How to Calculate Monthly Interest Rate in Excel
An Example of the Application of the Monthly Loan Interest Calculator in Excel
Imagine you borrowed $50,000 from ABC Bank at a 15% annual interest rate. Now figure out how much you must pay in interest on a monthly basis.
In the above problem,
The annual loan amount is $50,000.
The annual interest rate is 15%.
To calculate the monthly loan interest,
❶ Enter the annual loan balance in cell D4.
❷ Enter the annual interest rate in cell D5.
Once you’ve done this, you’ll see that cell D7 already contains the monthly loan interest calculation, which is $625.
In conclusion, we have talked about how to make and use an Excel daily loan interest calculator. It is advised that you download the practice workbook that is included with this article and use it to practice all the techniques. Also, feel free to ask any questions in the section below that is for comments. As soon as possible, we’ll attempt to respond to all pertinent questions. And please visit our website Exceldemy to explore more.
FAQ
How do I calculate daily interest on a loan in Excel?
- The formula below can be used to determine an investment’s final value after a specified period of time:
- A = P(1 + r/n)nt
- where:
- We can use 365 for n if the investment is compounded daily:
- A = P(1 + r/365)365t
How do you calculate daily interest on a loan?
The amount of interest that accrues daily is first calculated by dividing the annual interest rate on your loan by 365. Suppose you have a $10,000 loan balance with a 5% annual interest rate. You’d divide that rate by 365 (i. e. , 0. 05 divided by 365) yields a daily interest rate of 0 000137.