Daily interest calculation
Gem2889
Posts: 88 Forumite
Hi all,
I know you are all excel whizzes does anyone have a formula to calculate daily interest paid on a mortgage?
My friend G00gle has confused the situation 😂😂
Thanks
x
I know you are all excel whizzes does anyone have a formula to calculate daily interest paid on a mortgage?
My friend G00gle has confused the situation 😂😂
Thanks
x
Cleared 25k from mortgage in 4 years  now I need to do it again!
Dec 2020 Balance: £127,000
Dec 2021: Balance £121,500
Dec 2020 Balance: £127,000
Dec 2021: Balance £121,500
0
Comments

You need to multiply your balance by your interest rate as a decimal. Using your balance of £127k as an example, if your interest rate were 1.5% you need to do:
127000 * 0.015 = £1,905 for annual interest
Then divide by 365 for daily interest or 12 for monthly interestMortgage start: £65,495 (March 2016)
Cleared 🧚♀️🧚♀️🧚♀️!!! In 5 years, 1 month and 29 days
Total amount repaid: £72,307.03. £1.10 repaid for every £1.00 borrowed
Finally earning interest instead of paying it!!!2 
Thank you so much!!Cleared 25k from mortgage in 4 years  now I need to do it again!
Dec 2020 Balance: £127,000
Dec 2021: Balance £121,5000 
if you want a rough amount balance*(rate/365) work for many lenders.
(edit to fix the / to *)
The daily interest changes over time as the capital is paid off.
Read up a bit on amortization and then look at the financial excel functions.
here is the open office wiki
https://wiki.openoffice.org/wiki/Documentation/How_Tos/Calc:_Financial_functions
The main ones for mortgage spreadsheets are.
PMT work out the payment
FV for calculating how much you owe at a point in the future.
CUMIPMT calculate the interest for a period.
The functions assume an ordered year with equal months so don't track real mortgages exactly as the no of days in a month change and the payments dates change.
1 
I thought, I know the answer to this one.... @South_coast told me how.... but they have already posted!!1

South_coast said:You need to multiply your balance by your interest rate as a decimal. Using your balance of £127k as an example, if your interest rate were 1.5% you need to do:
127000 * 0.015 = £1,905 for annual interest
Then divide by 365 for daily interest or 12 for monthly interest
To get a more (but not completely) accurate figure throughout the year, you need to repeat every month using the new reduced outstanding balance after your monthly payment has been made, remembering to add on the preceding month’s interest.Nationwide give you an updated interest charged figure every day on their online banking/app, so you can see the daily figure by checking two days running and calculating the difference between the two figures. Other lenders may do the same.2.22kWp Solar PV system installed Oct 2010, Fronius IG20 Inverter, south facing (5 deg), 30 degree pitch, no shadingEverything will be alright in the end so, if it’s not yet alright, it means it’s not yet the endMFW #4 OPs (offset): 2018 £866.89, 2019 £1322.33, 2020 £1337.07,
2021 £1250.00, 2022 £1500.00, 2023 £1500Target for 2024 (offset) = £1200, YTD £345
Quidquid Latine dictum sit altum videtur1 
I convert the annual interest rate e.g. 2% to a daily interest rate using the formula ((1+ 0.02)^(1/365.25))1 (The .25 accounts for leap years)
so 2% pa = 0.0054218% per day
Now you calculate the interest due between two dates using the formula:
Capital * (1+0.000054218)^(no of days between the two dates)
The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.1
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