# Daily Loan Calculator in Excel

According to the interest rate & annual loan amount, a daily loan indicates the total sum you must pay. Excel allows you to design a single daily loan interest calculation. All that's left to do is enter the yearly loan amount and interest rate. The calculator will automatically determine the daily loan interest amount based on the entered data. This post will show you how to easily make a daily loan interest calculator using Excel.

## What's the Daily Interest on a Loan?

The daily interest that must be paid on a loan or credit depends on the loan amount and the annual interest rate. This is known as daily loan interest. We only need to divide the yearly loan interest by 365 to obtain daily loan interest through the annual loan interest.

## The formula for daily loan interest:

The daily interest on a loan or mortgage is computed using the following formula:

DAILY LOAN INTEREST= (ANNUAL LOAN BALANCE X ANNUAL INTEREST RATE)/365

Based on the provided data, the algorithm above will give you the total amount of daily loan interest.

One thing to keep in mind is this. The total loan balance may differ from the annual loan balance. Remember that. You can enter only the annual loan sum, not the entire loan balance, in the loan Daily Interest Calculator.

## Make an Excel daily loan interest calculator.

Set aside two cells for the annual interest rate and the annual loan sum, as these are necessary to calculate the daily interest on the loan.

Next, however,

• Select a cell in which a regular loan interest will be returned. In this case, I've selected cell C6.
• Next, enter the subsequent formula in cell C6 to get the daily interest on the loan.
=(C4*C4)/365
• Hit the ENTER key to run the formula mentioned above.

Thus, to determine the daily loan interest, use the calculator above.

The yearly loan balance and interest rate only need to be entered into cells C3 and C4 the next time. Then you're prepared to leave.

## An Instance of Using Excel's Daily Loan Interest Calculator

Assume you have a \$6,500,000 loan from ABC Bank for one year. Annual interest on the borrowed amount is due at a rate of 15%. What is the daily interest rate you will now be required to pay back for the loan amount you obtained?

In the mentioned issue,

• Each year, \$6,500,000 is the loan balance/Annual loan balance.
• Interest rates are 12% per year/Annual interest rate.

With these two pieces of information, we can quickly determine how much daily loan interest you will have to pay by entering them in the daily loan interest calculator we made.

• Put the Annual loan sum, or \$6,500,000, in cell C3 to do that.
• The Annual interest rate, or 15%, should be inserted again in cell C4.

Subsequently, you will notice that the daily interest on your loan has already been determined. That comes to 2671.232877.

## Excel Tool to Calculate Daily Compound Loan Interest

To figure out how much interest you will pay on a daily compound loan,

• The Total amount of the loan
• Rate of Interest Per Annum
• Loan Period
• Frequency of Loan Payments

To determine compound loan interest, use the following formula:

A=P(1+r/n)^nt

Where,

A = The total amount that you must pay back

P = The total amount borrowed.

r = The annual interest rate

n = Frequency of Payment

t= Loan period

The following calculator needs to be entered:

1. In Cell B4, enter Total Loan Amount.
2. In Cell B5, Annual Interest Rate.
3. The loan period in cell B6.
4. In Cell B9, payment frequency.

Once you've entered everything, cell B14 will display the monthly payment amount, and cell B15 will display the daily compound interest on your loan.

To generate the daily compound interest loan calculator,

• Allocate cells for the following data: period of loan, annual interest rate, total loan amount, and annual payments. In this case, I have utilised cells B4, B5, B6, and B11.
• Then, enter the subsequent formula on cell B13 to find the loan's monthly payment amount.
=IF(ROUND(-PMT((1+B5/\$B\$10)^(365/\$B\$11)-1,\$B\$6*\$B\$11,\$B\$4),2),-PMT((1+B5/\$B\$10)^(365/\$B\$11)-1,\$B\$6*\$B\$11,\$B\$4))

### Formula Explanation:

• The monthly compound interest amount of 1,17,272.45687 is determined by PMT((1+B5/\$B\$10)^(365/\$B\$11)-1,\$B\$6*\$B\$11,\$B\$4).
• To two decimal places, the monthly compound loan interest amount is rounded up using ROUND(-PMT((1+B5/\$B\$10)^(365/\$B\$11)-1,\$B\$6*\$B\$11,\$B\$4),2). The result is 1,17,272 (1,17,272.45687). The monthly payment is generated in a rounded version if the Rounding option is enabled. (ROUND(-PMT((1+B5/\$B\$10)^(365/\$B\$11)-1,\$B\$6*\$B\$11,\$B\$4),2),-PMT((1+B5/\$B\$10)^(365/\$B\$11)-1,\$B\$6*\$B\$11,\$B\$4)) It maintains the original value if not.
• The Daily Compound Loan Interest can be obtained by entering this formula in cell B15.
= B14/30
• Hit the ENTER button to finish.

## Use Excel to create a monthly loan interest calculator

The following formula can be used in Excel to determine the monthly loan interest:

MONTHLY LOAN INTEREST = (ANNUAL LOAN BALANCE X ANNUAL INTEREST RATE) / 12

To construct a monthly loan interest calculator, go ahead and

• To save the annual interest rate and loan balance, choose two cells.
• Next, select a different cell to which you wish to return the monthly loan interest amounts. In this case, my choice is cell C6.
• After this, enter the subsequent formula into cell C6.
=(C3*C4)/12
• To use the formula now, press the ENTER button.

This is the interest calculator for your monthly loan. The yearly loan balance and interest rate are all required to be entered. After that, you can proceed.

## Using the Excel Monthly Loan Interest Calculator: An Example

Assume you borrowed \$3,25,000 from ABC Bank at a 30% annual interest rate. Proceed to compute the monthly loan interest that you must repay.

In the mentioned issue,

• A \$3,25,000 loan is available each year/Annual loan balance.
• 30% interest is charged annually/Annual interest rate.

The monthly loan interest is computed as follows:

• In cell C3, enter the Annual loan balance.
• In cell C4, enter the Annual interest rate.

Once completed, cell C6 will display your loan interest, which is \$8125 per month, already calculated.

## Points to Keep in Mind

• In the formula for daily loan interest, enter the annual loan balance rather than the total loan balance.