An up-to-date amount of accrued interest on the account is displayed in the Interest Accrued to Today field below.

The total accrued interest for each loan is calculated using the following rules:

Accrued Interest Calculations

If the payment Frequency is set to "Monthly" and the Date Last Accrued is exactly one month prior to the end of the present month, then Accrued Interest = Principal Balance X Interest Rate / 12

If the payment Frequency is set to "Monthly" and the Date Last Accrued is less than one month prior to the end of the present month, then Accrued Interest = (Principal Balance X Interest Rate / 12) X Days Accrued / Days in Month

If the payment Frequency is set to "Monthly" and the Date Last Accrued is greater  than one month prior to the end of the present month, then Accrued Interest =

(Principal Balance X Interest Rate X # of Full Months Due / 12) + {(Principal Balance X Interest Rate / 12) X # of Days Less Than One Month / # of Days in Current Month}

If the payment Frequency is not set to "Monthly," then Accrued Interest = (Principal Balance X Interest Rate X Frequency / 12) X # of Full Payment Frequencies in Accrual Period + {(Principal Balance X Interest Rate X Frequency / 12) X # of Days Short of One Full Frequency} / No. of Days in the Current Frequency.

Possible selections in this field are shown below:

Note that for a leap year, if the interest period includes two years, both bases will be used in interest calculation. For example, if the interest period includes 12/15/12 to 1/15/13, the period from 12/15/12 (the leap year) to 1/1/13 will use the 366-day basis and the period from 1/1/13 to 01/15/14 will use the 365-day basis.

Calculation Methods 101-105 are used to allow the Date Last Accrued (see above) to be a date other than one Frequency period before the Due Date. As payments are made, the system will simultaneously advance each Date Last Accrued one Frequency period forward and will not require them to stay synchronized.

For Bi-Weekly loans, use Calculation Methods 1 or 101, 14 days and a 365-day year.

Interest is calculated by the system as follows: Principal Balance X Interest Rate / 365 X 14