How to use
- Enter the rate and its unit (%, ‰ per thousand or ‱ per ten thousand).
- Choose whether it is a daily, monthly or annual rate, and whether a year has 365 or 360 days.
- Read the converted rates; enter a principal to see the interest per day, month and year.
Options explained
- Annual rate (simple)
- The daily rate × days in the year, or the monthly rate × 12. This is how most loan agreements quote an annual rate.
- Compounded rates
- What a year of daily or monthly compounding actually adds up to. Always a little higher than the simple rate.
- 360 or 365 days
- Many banks count interest on a 360-day year; credit cards and consumer loans usually annualise daily rates over 365 days, which gives a higher annual figure.
Common conversions
| Rate | Annual (simple, 365 days) | Monthly | Compounded daily for a year |
|---|---|---|---|
| 0.05% a day | 18.25% | 1.52% | 20.02% |
| 0.02% a day | 7.30% | 0.61% | 7.57% |
| 1% a month | 12.00% | 1.00% | 12.75% |
| 2% a month | 24.00% | 2.00% | 27.11% |
| 3.6% a year | 3.60% | 0.30% | 3.67% |
Frequently asked questions
What is a daily rate of 0.05% as an annual rate?
18.25% on a 365-day year, or 18% on a 360-day year. Compounded daily it grows to about 20.02% in a year.
What does 1% a month come to per year?
12% as a simple annual rate, or 12.68% if the interest is compounded monthly.
Why is the compounded rate higher?
With compounding, interest already earned starts earning interest too, so a year of daily or monthly compounding ends slightly above the simple rate.
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