## 30/360, Actual/365, and Actual/360 Day Counts

Learn the three day counting conventions that banks use to calculate interest.

Learn the three day counting conventions that banks use to calculate interest.

The DAYS360 function calculates days using 30 days for each month. When using a 365-day daily interest rate computation, the interest rate is divided by 365 and multiplied by the principal for each day you calculate interest. When using a 360-day year method, the interest rate is divided by 360 and multiplied by the principal … Read more