**Excel** is the most widely used tool for dealing with massive datasets. We can perform myriads of tasks of multiple dimensions in **Excel**. In this article, I will show you how to perform **actual 360** Interest calculation in **Excel**. This is one of the methods to calculate interest rates with a given loan amount and interest rate.

## Download Practice Workbook

Download this workbook and practice while going through the article.

## Introduction to 360 Interest Calculation System

**Actual/360**, also known as the **365/360** rule, is the most frequently used method by banks to calculate interest accrual. In this method, you need to divide the **annual interest rate** by **360** to get the daily interest rate. Then you multiply the daily interest rate by the number of days in the month. Thus you will get the interest rate for that month. After that, upon multiplying the loan amount by the **monthly interest rate**, you can calculate the interest amount.

The **actual/360** method is used by most banks because it helps to standardize** daily interest** rates across the year. Another advantage of **360-day** calculations over **365-day** calculations is that the daily interest rate is slightly higher.

## 2 Steps to Perform Actual 360 Interest Calculation in Excel

The **actual 360** Interest calculation is very simple to do in **Excel**. I have divided the entire process into 2 easy steps. Let’s see them one by one.

### Step 1: Write Down Required Information

The first step is to write down the information. In our example, the loan amount is **$50000**, the annual interest rate is **5%** and the number of days in the month is **31**.

**Read More:**** How to Calculate Interest on a Loan in Excel (5 Methods)**

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### Step 2: Calculate Interest Amount in Actual/360 Method

The next step is the** calculation of the interest** amount. We are going to calculate the interest monthly. To calculate,

- Go to
**C7**and write down the following formula

`=C4*C5/360*31`

**Formula Explanation:**

- The Annual Interest Rate is
**5%**. - I have divided
**5%**by**360**to get the**daily interest**rate of**014%**. - Then, I multiplied
**014%**by**31**and got the**monthly interest rate**of**0.43%**. - Finally, I multiplied
**$50,000**by**43%**to get the monthly interest.

- Then, press
**ENTER**to get the output.

**Read More:** **How to Calculate Interest Rate in Excel (3 Ways)**

## Things to Remember

- The
**actual/360**method helps standardize daily interest rates across the year.

## Conclusion

In this article, I have demonstrated how to perform **actual 360** Interest calculation in **Excel**. I hope it helps everyone. If you have any suggestions, ideas, or feedback, please feel free to comment below. Please visit **Exceldemy** for more useful articles like this.

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