This daily simple interest loan calculator is a pre-automated Excel tool that allows you to understand, calculate, track, manage, and schedule any type of secured or unsecured loan. But hold on – what do we mean when we say ‘daily’ or ‘simple’?
Here’s the deal.
A ‘daily’ interest rate charges interest by the day. Suppose you borrow $10,000 at an Annual Interest Rate of 5%. Your daily interest rate is 5% divided by 365 = 0.014%. Now, to calculate the interest you pay with each installment, multiply the Daily Interest Rate (DIR) you just calculated by the outstanding principal (since the last payment) AND the number of days since the last payment.
The good part is that if you repay early, you save money—because the interest only accumulates for the days between payments on the unpaid balance. By paying a few days early, you reduce the number of these days—and with that, your interest.
Ok, what about ‘simple’? Simple means that interest is calculated on the outstanding principal since the last payment, so you don’t pay interest on any prior unpaid interest.”Keep reading to learn how tracking the Principal vs. Interest component of each repayment is good for you and your finances!
What This Sheet Does
We deliberately designed this sheet to be as simple as possible. It is ideal for private borrowers looking for an at-home, DIY solution to their loan repayment woes!
Whether you are editing this spreadsheet offline using Excel or online via Google Sheets, we make it easy for you to keep track of your daily interest accruals! Loan borrowers are generally advised to compare a few loan plans that charge you daily interest rates to find the most cost-effective option.
For monthly interest rate calculations, feel free to use other premade loan-calculating sheets developed by our team at Word Layout, which charge interest every month, not every day.
Inside, find…
- A Live Payment Schedule: Calculate, track, and manage repayments to pay back any loan. Use our template to create a live, interactive spreadsheet with each row representing a single repayment.
- A Loan Amortization Table: Take control of your loan by understanding how each loan instalment is split into an interest & principal component. Simply add the exact monthly installment quoted by your lender. We’ll use this amount to build an estimated amortization table tailored to your unique financial situation.
- An Interactive Benchmark Sheet: Compare loan arrangements using a reference sheet provided in addition to the main calculating sheet. This allows you to try out different interest rates, loan amounts, and payback durations, and see how these affect your daily interest rate, monthly payment amount, and the total interest you pay by loan term end.
Factor In Extra Payments
Want to pay back your loan faster? You can always choose to pay extra on top of your regular installment. Extra principal payments reduce interest going forward. By lowering your principal amount, these payments allow you to reduce the overall interest you pay on the loan, resulting in immediate savings.
Early Payment Support: Simply add the additional amount in Column E – against the month or period when you plan to pay extra. Based on this, our template adjusts values in the next columns to reflect the new principal, interest, and loan balance.
How To Calculate the Interest Portion in Each Payment
In daily interest loans, the interest portion in each fixed-rate payment is calculated based on the number of days between the first day interest accrues to when the loan repayment is due.
This is the formula we use…
Interest for the period = Outstanding Principal at the start of the period × (DIR × Number of Days in the period).”
Where,
Days in period = the number of days between the last payment posting date and the current payment posting date.
A Step-by-Step Guide to Using Our Premade Excel Sheet
Follow these simple steps to make the most of our daily interest loan calculator.
- Step 1: To ensure proper documentation, name the person or entity lending you money (for example, a bank, a financial firm, or a private financier)
- Step 2: Enter basic loan details, including the borrowed amount, the annual interest rate, the loan term, and the date of your first loan instalment (user-specified)
- Step 3: Determine the frequency at which you want to pay back using our comprehensive drop-down menu. We offer market-standard options, including Bi-Weekly, Semi-Monthly, Monthly, Quarterly, and Annually
- Step 4: Instantly see how much you have to pay every payment period, all thanks to our built-in formulas, where interest accrues daily on the outstanding balance between payment dates.
- Step 5: Create and maintain a live Amortization Schedule to take more effective control of your financial or loan commitments
- Step 6: Track & analyse how each payment is split into principal and interest over time. This knowledge feature can help you pay back debt faster through additional payments to lower the principal!
- Step 7: Look at the remaining balance after each loan repayment to see how much you still have to pay after each payment period
- Step 8: Find out how much Total Interest you are going to pay over the entire loan term with each payment, including the total amount of daily interest on your loan
- Step 9: Use our Benchmark Sheet as a reference guide to compare different daily simple interest loan scenarios & arrangements
- Step 10: Update the smart sheet if there are any changes in your loan arrangements or legal & regulatory changes affecting your loan repayment dynamics
Key Template Features
- Built-in mathematical formulae & calculations using minimal user data input
- Visual charts showing the amount borrowed against the total interest paid.
- No Macros Required – Fully formula-based for easy customization and safety.
- Printable Report – Clean, ready-to-print layout for record-keeping or client sharing
With minimal effort on your part, our smart, pre-programmed loan calculator instantly delivers precise loan insights—tailored to your unique financial situation. With a bit of Excel magic, we help you make confident and responsible financial decisions in seconds.
| What You Tell Us | What We Tell You |
|---|---|
| Annual Interest Rate | Daily Interest Rate = Annual Interest Rate ÷ day-count base. Lenders usually use 365. Some use 360. Leap years can be 366. The Day Base is to be specified by the user. |
| Total Loan Amount | Loan Installment Amount. User Note: If you enter a scheduled payment from your lender, we build the schedule. |
| Payment Frequency | Total no. of payments throughout the life of the loan. |
| First Payment Date | Last payment date, calculated based on loan term & payment cadence. |
| Loan Term (duration in years) | Total amount of extra payment made throughout the loan term. |
Posting date matters:
Note that in a daily simple-interest loan, the interest accrues until the lender posts the payment. Paying on a Friday night may post on Monday. That adds days.
Data Widgets
A well-designed spreadsheet highlights the data that matters most to users. For each simple interest loan, four vital loan values are displayed in large, bold text boxes to help you get the crux of each loan arrangement you’re working with.
Grand total
This is the sum of all your periodic payments by the end of the loan term. It is the borrowed amount plus all the interest you paid on it. We highlight this value for you – so you know the kind of financial commitment you are walking into from the start – and if it’s worth it in the long run!
Also highlighted are…
- The loan amount (what you borrow)
- The periodic installment amount (what you pay back each month or week, etc.)
- Total interest on the loan (what the lender charges you)
As you input new or different data, these values are instantly updated in real time. As you compare these values for multiple loan arrangements on multiple sheets, you can see which option costs you less overall, helping you pay off debt faster.
A Quick & Handy Resource for…
- Private borrowers & lenders
- Leasing firms that need quick daily interest calculations
- Banks & credit unions
- Online lenders & loan marketplaces
- Financial planners & accountants
- Business users
