Interest Accrual Calculator
Calculate accumulated interest on DeFi loans
Loan Details
Initial loan amount borrowed
APR (not APY)
Number of days/months/years
Select time unit
How often interest compounds
Interest Accrual Scenarios
Short-Term Loan
Borrowed $5k at 8% APR for 7 days. Daily interest: $1.10. Total after 7 days: $5,007.70. Quick in-and-out. Low total interest but high daily rate. Good for flash strategies.
Compound Effect
$10k at 5% APR for 1 year. Simple interest: $500. Daily compound: $512.67. Continuous compound: $512.71. Extra $12+ from compounding. DeFi uses continuous.
Monthly Tracking
$20k loan at 6% APR. Month 1: $100 interest. Month 2: $100.50 (compounds on $20,100). Month 3: $101. After 6 months: $610 total. Track monthly to plan repayments.
Early Repayment Savings
$15k at 7% APR. Plan: 90 days = $259 interest. Repaid at 30 days = $86. Saved $173 by paying early. Interest accrues daily, so every day counts.
Variable Rate Impact
Started $10k at 4% APR. Rate jumped to 8% after 15 days. First 15 days: $16.44. Next 15 days: $33.33. Total: $49.77. Variable rates change your accrual mid-loan.
Long-Term Accumulation
$50k at 3% APR for 2 years. Simple: $3,000. Continuous compound: $3,091. Difference grows over time. Year 1: $46 extra. Year 2: $45 more. Long loans = bigger compound impact.
Frequently Asked Questions
How does DeFi interest accrue?
Every block (15 sec). Daily rate = APR / 365. $10k at 5% = $1.37/day. Compounds continuously.
APR vs APY?
APR = simple. APY = compound. 5% APR = 5.13% APY daily compound. DeFi shows APY.
Calculate daily interest?
Principal × (APR / 365). $10k at 6% = $10k × 0.06 / 365 = $1.64/day.
Compound frequency matter?
Yes. Continuous > Daily > Monthly > Simple. 5% APR: Simple $500/year, Continuous $512.71/year.
Reduce accrued interest?
Repay loan early. Make partial payments. Lower principal = lower daily accrual. Every day counts.
Variable rates?
Rate changes affect future accrual, not past. Track rate changes. High utilization = higher rates.
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