365/360 Loan Calculator
Use this calculator to create an amortization schedule for a loan that uses a 365/360 schedule.
How the 365/360 loan calculator works
It amortizes your loan twice: once on the standard 30/360 basis and once on the 365/360 basis, where interest accrues on a 360-day year but is charged across all 365 days. The gap between the two is the hidden extra cost of the 365/360 convention.
Worked example: with loan amount of $250,000, quoted interest rate of 7.00% and loan term (years) of 10, the 365/360 loan calculator shows extra interest on the 365/360 method of $1,505.
- 30/360 payment
- $2,902.71
- 365/360 payment
- $2,915.25
- 30/360 total interest
- $98,325
- 365/360 total interest
- $99,831
| Loan amount | Extra interest on the 365/360 method |
|---|---|
| $100,000 | $602 |
| $250,000 | $1,505 |
| $500,000 | $3,010 |
| $1,000,000 | $6,020 |
The formula
The 365/360 method multiplies the effective rate by 365 ÷ 360. The calculator compares total interest at the quoted rate versus the rate × 365⁄360.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the 365/360 loan calculator
What is a 365/360 loan?
A loan where the lender computes a daily rate by dividing the annual rate by 360, then charges that daily rate for all 365 days of the year — so you pay more interest than the quoted rate implies.
How much more does the 365/360 method cost?
It raises the effective rate by about 1.4% of the rate (365⁄360). On a large or long commercial loan that can add a meaningful sum, which the calculator quantifies.
Where is the 365/360 method used?
Mostly in commercial and business lending. Always ask which day-count convention a lender uses, because the same headline rate can cost different amounts.
Is the 365/360 Loan Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.