Actual/360 commercial loan interest calculator
Calculate a simple commercial loan interest estimate using the Actual/360 convention and compare it with Actual/365 using the same balance, rate and days.
Actual/360 interest estimate
- Actual/360
- $6,041.67
- Actual/365 comparison
- $5,958.90
- Difference
- $82.76
The comparison shows why the contractual day-count convention must be confirmed before approving an accrual or payoff.
Calculation boundaries
Assumptions behind this estimate
Transparent assumptions make it easier to identify where a contractual or production calculation may differ.
- The balance and annual rate remain constant across the entered days.
- Actual/360 uses elapsed days divided by 360; Actual/365 uses elapsed days divided by 365.
- The page does not apply compounding, business-day adjustments, rate changes or principal movements.
- Currency rounding and period-boundary rules must follow the governing agreement.
Common questions
Calculator FAQ
What does Actual/360 mean?OpenClose
The numerator uses the actual eligible days in the accrual period, while the annual denominator is 360. The agreement controls which days are included and how dates are adjusted.
Is Actual/360 always used for commercial loans?OpenClose
No. Conventions vary by currency, benchmark, product and contract. Actual/365 Fixed, 30/360 and business-day conventions may also apply.
Why is Actual/360 interest higher than Actual/365?OpenClose
For the same principal, annual rate and elapsed days, dividing by 360 creates a larger year fraction than dividing by 365.