Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 6 years ago,

User Stats

28
Posts
8
Votes
Thomas Fawcett
  • Investor
  • Ankeny, IA
8
Votes |
28
Posts

How to calculate interest payout for my investor?

Thomas Fawcett
  • Investor
  • Ankeny, IA
Posted

Hey Guys, 

I have an investor I need to pay and I want to make sure I am calculating interest correctly.  Here is my example;

Loan had an initial 6 month period that was at 12% apr and then moved to 18%.  Loan period is from 6/11/2018 - 2/26/2019.  

Principal Invested   $10,000

6/11 - 12/11 @ 12% (6 months or 183 days)

12/12-2/26 @ 18% (2 Months 14 days  or 77 Days) 

When calculating interest do you use the total number of days or do you use months and then days? This is not a big deal but numbers will end up being slightly off and I want to know what is correct.  Not sure if I am doing this right but these are the results I got for interest payments with the two methods. 

Days Method = $981.37

Months and Days = $1,023.29

What is right or are both wrong?  Thanks for your help!!   

Thomas 

Loading replies...