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How to Calculate Daily Interest

August 14, 2011

By Barbara Haubrich-Hass, ACP/CAS

There are templates for everything, including calculating daily interest. In order to create a template in Excell for the daily interest calculation, you must know the formula. It also never hurts to know how to do something the “old fashioned way” as my kids put it.

In this example, the total judgment is $500,000.00. The judgment was entered on January 4, 2010 and the date of calculation for the daily interest ends on June 4, 2010.

Here is the formula to calculate daily interest at 10%. Multiply the total judgment by 0.10 for the total interest. Divide that total by 365 [number of days in a year] to get the daily interest that can be assessed. Multiple the daily interest by the number of days between the dates of calculation for the total interest accrued to date. In this example, this is what it would look like:

Calculation#1 Calculation #2 Calculation #3

500,000.00 50,000.00 136.99

x 0.10 ÷ 365.00 x 151.00

50,000.00 136.99 20,684.93

Therefore, interest accrued in this example from January 4, 2010 to June 4, 2010, is $136.99 per day for 151 days for a total amount of $20,684.93.

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