Calculate interest accrued over a specific number of days.
The annual rate is converted to a daily rate by dividing by 365.
That daily rate is applied to the principal for the number of days specified.
Daily rate: Annual rate ÷ 365
Interest: Principal × daily rate × days
Where is daily interest actually used?
It is commonly used for savings accounts, short-term loans, and working out the exact interest for part of a month, or for a loan paid off early.