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loans interest

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December 28, 2025 Score: 12 Rep: 150,365 Quality: Expert Completeness: 50%

I am going to ignore trying to calculate the daily interest and focus on the two pairs of transactions that you are unsure about in the question.

Statement Date: 5/5/25. Due Date: 5/20/25. Payment made on 4/10/25: $110.86 principal $389.14 interest.

Statement Date: 5/26/25. Due Date: 6/20/25. Payment made on 5/19/25: $2.98 principal $497.02 interest.

a quick calculation shows that the loan has 180 payments, and the first month the payment would have been:

  • $424.50 interest
  • $72.52 principal
  • $2.98 extra principal.

Because this wasn't the first payment, the interest would have been a little lower and the principal payment a little higher.

But you made an error. There were more than a month of days between payments. That mean the daily interest caused the amount of interest you owed to exceed the amount of money you sent them. You forfeited some the amount of principal you were gaining by making other payments earlier. You may have noted that the amount of money you still owed went up.

Statement Date: 7/26/25. Due Date: 8/20/25. Payment made on 7/9/25: $99.69 principal $400.31 interest.

Statement Date: 8/26/25. Due Date: 9/20/25. Payment made on 8/19/25: $2.98 principal $497.02 interest.

This is the same thing. You made a payment more than 30 or 31 days later. Again you owed more in interest than you sent them.

This is the issue with trying to make non-periodic payments with a daily interest rate. If you keep this up the pattern will continue. Some months you appear to get ahead, and other months you fall behind. The big problem will be if you fall too far behind you could trigger them to foreclose or repossess the collateral.

You need to set up automatic payments to keep to the schedule.

December 30, 2025 Score: 2 Rep: 558 Quality: Low Completeness: 60%

The calculations seems more or less correct. I did a quick spreadsheet and it is about the correct amounts. Note that:

  1. the daily interest gets calculated according to payment dates (not the statement date).
  2. Any unpaid interest goes towards principal amount.

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Sorry about date format and that the calculation is off a few dollars on the unpaid interest (due to rounding errors in my calculation I believe).

December 31, 2025 Score: 1 Rep: 11 Quality: Low Completeness: 30%

Daily interest is usually calculated based on the outstanding principal, the annual interest rate, and the number of days the amount remains unpaid. The most common method is simple daily interest, unless the agreement specifies compounding.

A typical formula looks like this:

Daily Interest = (Principal × Annual Interest Rate) ÷ 365 Total Interest = Daily Interest × Number of Days

Example: If the principal amount is 100,000 and the annual interest rate is 12%:

Annual interest = 100,000 × 12% = 12,000 Daily interest = 12,000 ÷ 365 ≈ 32.88 per day

If the amount is outstanding for 10 days: Interest = 32.88 × 10 ≈ 328.80

So if your calculation is close to this value, it is likely being calculated correctly under a simple daily interest method.

In real business scenarios, accounting software often automates this to avoid manual errors. For example, in cloud accounting tools like Giddh, interest calculations are typically derived from the ledger balance and the defined interest rate, applying the daily calculation consistently based on transaction dates. This helps ensure accuracy, especially when payments are made mid-period.

If your result differs significantly, it’s worth checking:

Whether the interest is simple or compounded

The day count basis (365 vs 360)

Whether partial payments are reducing the principal during the period

Once those factors are aligned, daily interest calculations usually become clear and predictable.

January 1, 2026 Score: 0 Rep: 1 Quality: Low Completeness: 10%

Formulas for compounded interest:

Daily interest rate = yearly interest rate ^ 1/365

Daily interest = previous day's amount owed x daily interest rate

The servicer's statement is nonsense. As you are always ahead with your payments, those longer payment periods will eat up some of the extra progress you made, but you can't ever fall behind what you'd have paid off if you always paid just in time.