Equated Daily Installment Calculator

The Equated Daily Installment Calculator calculates fixed daily repayments from principal, interest rate, term and fees, showing total interest and amortisation schedule.

What Is a Equated Daily Installment Calculator?

An Equated Daily Installment (EDI) calculator computes the same payment amount due every day over a loan’s term. It mirrors the logic behind monthly EMIs, but shifts the schedule and accrual to a daily rhythm. This tool models interest that accrues each day and a level installment that covers that day’s interest plus a slice of principal. The result is a predictable daily cash outflow and a transparent payoff timeline.

Daily schedules often appear in merchant cash advances, working capital loans, and short-term consumer products. Lenders may draft payments on business days, even if interest accrues on calendar days. A dedicated EDI calculator captures these nuances by letting you set day-count conventions, start dates, and optional fees.

Equations Used by the Equated Daily Installment Calculator

The calculator uses standard amortization math adapted to daily periods. The core idea: interest accrues on the outstanding balance each day at a daily rate, and a fixed payment removes that day’s interest and some principal. Below are the key equations and identities it applies.

• Daily rate: r_d = APR / D, where D is the day-count basis (365 or 360).
• Installment amount: P = L × [r_d / (1 − (1 + r_d)^(-n))], where L is principal and n is total days.
• Interest on day k: i_k = B_(k−1) × r_d, where B is the balance before the day’s payment.
• Principal on day k: p_k = P − i_k.
• New balance after day k: B_k = B_(k−1) − p_k.

When r_d is zero (zero-interest offers), the installment is simply P = L / n. If payments stop on nonbusiness days, the model can still accrue interest daily but post payments on the next business day. The calculator highlights these assumptions in the breakdown so you can review them.

The Mechanics Behind Equated Daily Installment

Daily amortization spreads the cost of borrowing into equal calendar-day payments. Each day, interest is calculated on yesterday’s remaining balance. The fixed payment first covers that interest, and the remainder chips away at principal. Over time, the interest piece shrinks and the principal piece grows.

• Accrual cadence: Interest is computed each day using the daily rate and prior-day balance.
• Payment timing: The model typically assumes end-of-day payments unless you pick start-of-day timing.
• Compounding choice: Daily compounding aligns with APR/D, but you can choose 365 or 360 conventions.
• Rounding: Payments may be rounded to the nearest cent, with a small final adjustment on the last day.
• Calendars: You can model calendar days for accrual and business days for collections if needed.

This framework matches how many lenders compute short-term obligations. By making the cash flow daily, the borrower sees steady, manageable amounts. The calculator displays a day-by-day breakdown so you can verify totals and compare scenarios.

Inputs, Assumptions & Parameters

Before computing the daily installment, set the key inputs. These control the math and the repayment pattern. Most users need only the loan amount, the annual rate, the term in days, and a start date.

• Loan amount (principal): The funded amount that accrues interest.
• Annual Percentage Rate (APR): The yearly rate converted to a daily rate by a chosen basis.
• Term length in days: Total number of days over which you will make equal daily payments.
• Start date: The date interest begins to accrue and the schedule begins.
• Day-count basis: 365/365 or 30/360; choose how r_d is derived from APR.
• Fees and timing: Origination fee, daily processing fee, and end-of-day vs start-of-day payment timing.

Set realistic ranges to avoid edge-case errors. A zero or negative APR is allowed but changes the formula behavior. Very short terms (under 7 days) or very long terms (over 1,095 days) can magnify rounding effects. If fees are financed, the principal increases; if paid upfront, the loan amount remains lower.

How to Use the Equated Daily Installment Calculator (Steps)

Here’s a concise overview before we dive into the key points:

1. Enter the loan amount you plan to borrow or have already borrowed.
2. Input the APR and select your day-count basis (365 or 360) for the daily rate.
3. Choose the term in days and set the start date of accrual.
4. Add any fees and select whether they are financed or paid upfront.
5. Select payment timing (end-of-day or start-of-day) and the collection calendar.
6. Run the calculation and review the daily breakdown, totals, and charts before exporting.

These points provide quick orientation—use them alongside the full explanations in this page.

Real-World Examples

A coffee shop borrows $12,000 for inventory with an APR of 18% over 120 days. Using a 365 basis, r_d = 0.18/365 = 0.00049315. Payment P = 12,000 × [0.00049315 / (1 − (1.00049315)^(-120))] ≈ $110.71 per day. Over the term, total paid is about $13,285; interest totals around $1,285. What this means: The owner can plan roughly $111 daily, seeing interest fall and principal reduction rise across the schedule.

A contractor takes a $25,000 advance at 27% APR for 200 days, with a financed $500 origination fee. Financed principal L = $25,500. With a 360 basis, r_d = 0.27/360 = 0.00075. Payment P = 25,500 × [0.00075 / (1 − (1.00075)^(-200))] ≈ $156.58 daily. Total paid is about $31,316, of which roughly $5,816 is interest and $500 is the fee. What this means: Daily cash outflow near $157 is required; choosing a 360 basis slightly increases the daily rate relative to 365.

Accuracy & Limitations

The calculator applies a standard amortization model adapted for daily schedules. It offers clear assumptions and a detailed breakdown. Still, real contracts can include rules that differ from pure math.

• Some lenders use business days for payments but calendar days for interest accrual.
• Late fees, minimum interest, or penalty rates are not applied unless you add them explicitly.
• Rounding methods vary; a lender may round each daily interest amount, not just the payment.
• Holidays and cut-off times can change the effective number of collection days.

Use the results for planning and comparison, not as a binding quote. Always review your agreement for day-count rules, fees, and any special clauses. If your contract specifies a different method, adjust the inputs or consult your lender.

Units and Symbols

Units and symbols matter because small daily differences compound over many days. Clearly reading rates, time, and money helps you compare offers and test assumptions. For example, the daily rate depends on whether your APR uses a 365 or 360 basis.

Read the table left to right: symbol, what it represents, and the unit you should enter or expect. Keep rates as decimals for calculations (0.18, not 18). Keep amounts in consistent currency units.

Troubleshooting

If your daily payment looks off, start with assumptions. Check the day-count basis, payment timing, and whether fees are financed. Small changes in r_d or n can move the result by several dollars per day.

• If P is too low, confirm the APR and basis; 360 can raise r_d compared with 365.
• If totals seem high, verify fees and whether you capitalized them into L.
• If dates misalign, recheck the start date and any business-day settings.

When comparing to a lender quote, match their exact rules, including holiday handling and rounding. If you cannot match their result, ask the lender for their schedule and compare line by line.

FAQ about Equated Daily Installment Calculator

Is Equated Daily Installment the same as EMI but daily?

Yes. It is the same amortization idea, but interest accrues daily and the fixed payment is due each day instead of monthly.

Which day-count basis should I choose, 365 or 360?

Follow your contract. If unspecified, 365 aligns with calendar days; some lenders use 360, which produces a slightly higher daily rate.

Can I handle nonbusiness days and holidays?

Yes. Accrual can be daily while collections skip to the next business day. The schedule will show any moved payments.

What if my APR is 0% or I have a promotional period?

At 0% APR, daily payments are principal-only. For promos, set APR to 0% for the promo days and normal APR after, if supported.

Key Terms in Equated Daily Installment

Equated Daily Installment (EDI)

A fixed daily payment that covers that day’s interest and reduces principal so the loan amortizes over the chosen term.

Annual Percentage Rate (APR)

The annualized cost of credit expressed as a yearly rate, used to compute a daily rate for accrual.

Day-Count Basis

The rule that converts annual rates into daily rates, commonly 365/365 or 30/360 conventions.

Amortization

The process of spreading loan repayment into equal installments where interest declines and principal repayment increases over time.

Financed Fees

Charges added to the loan balance rather than paid upfront, increasing the amount that accrues interest.

Rounding Adjustment

A small change to the final payment to reconcile cents accumulated by daily rounding throughout the schedule.

Payment Timing

Whether the installment is considered at the start or end of each day, which slightly changes interest calculations.

Business-Day Convention

A rule that shifts payments falling on weekends or holidays to the next or previous business day.

Disclaimer: This tool is for educational estimates. Consider professional advice for decisions.

References

Here’s a concise overview before we dive into the key points:

• CFPB explainer: What is APR?
• Investopedia: Amortization Schedule
• Wikipedia: Day count convention
• The Balance: What Is Daily Compound Interest?
• FINRA: Understanding Interest and APR
• CFPB blog: Merchant cash advances and small businesses

These points provide quick orientation—use them alongside the full explanations in this page.