How to Calculate the Accumulated Interest on a Loan

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    • 1). Look up the annual interest rate for the loan, which you can find on the origination documents or on your monthly statement.

    • 2). Divide the interest rate by 36,500 to convert it to a daily decimal interest multiplier. For example, if your loan has an interest rate of 9 percent, calculate 9/36,500 to get 0.0002466.

    • 3). Look up the current loan balance. This is either the loan balance after your last payment or, if you have never made a payment, the amount you originally borrowed.

    • 4). Multiply your loan balance by the daily decimal interest multiplier to calculate how much interest accumulates each day. For example, if your loan's balance is $14,927, multiply that by 0.0002466 to calculate daily interest of $3.68.

    • 5). Multiply your daily interest by the number of days interest has been accumulating. For example, if you are calculating the interest since your last payment, which was 28 days ago, multiply $3.68 times 28 to calculate that $103.04 in interest has accumulated.

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