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365/360 Commercial Loan Calculator

Compare commercial loan day-count methods before you sign

Many commercial bank loans accrue interest on an Actual/360 basis, often called 365/360. That means interest is charged for the actual number of calendar days, but each day's interest is calculated using a 360-day year. Use this calculator to compare 365/360 against Actual/365 and 30/360 amortization so you can see the real cost difference.

  • Compare Actual/360, Actual/365, and 30/360 interest accrual
  • Shows extra interest versus a standard 30/360 baseline
  • Full amortization table with days counted for every payment period
  • Effective annual rate estimate for 365/360 commercial notes
$1,000,000
8.00%
10 yr
Interest Accrual Basis
Monthly Payment
$12,133
Total Interest
$467,462
Extra vs. 30/360
$11,531
Additional interest from day-count method
Effective Rate
8.11%
Nominal rate multiplied by 365/360
Actual/360 is often called 365/360 in commercial lending because interest accrues for actual calendar days, but each day's interest uses a 360-day denominator. That can make an 8.00% note behave closer to an 8.11% annual cost before fees.

Amortization Schedule

Showing 24 of 120 payments using actual/360.

$1,467,462
Total paid
#DateDaysPaymentInterestPrincipalBalance
1Jul 1, 202630$12,133$6,667$5,466$994,534
2Aug 1, 202631$12,133$6,851$5,282$989,252
3Sep 1, 202631$12,133$6,815$5,318$983,934
4Oct 1, 202630$12,133$6,560$5,573$978,361
5Nov 1, 202631$12,133$6,740$5,393$972,968
6Dec 1, 202630$12,133$6,486$5,646$967,322
7Jan 1, 202731$12,133$6,664$5,469$961,853
8Feb 1, 202731$12,133$6,626$5,507$956,346
9Mar 1, 202728$12,133$5,951$6,182$950,164
10Apr 1, 202731$12,133$6,546$5,587$944,577
11May 1, 202730$12,133$6,297$5,836$938,741
12Jun 1, 202731$12,133$6,467$5,666$933,076
13Jul 1, 202730$12,133$6,221$5,912$927,163
14Aug 1, 202731$12,133$6,387$5,746$921,418
15Sep 1, 202731$12,133$6,348$5,785$915,632
16Oct 1, 202730$12,133$6,104$6,029$909,604
17Nov 1, 202731$12,133$6,266$5,867$903,737
18Dec 1, 202730$12,133$6,025$6,108$897,630
19Jan 1, 202831$12,133$6,184$5,949$891,680
20Feb 1, 202831$12,133$6,143$5,990$885,690
21Mar 1, 202829$12,133$5,708$6,425$879,265
22Apr 1, 202831$12,133$6,057$6,076$873,190
23May 1, 202830$12,133$5,821$6,311$866,878
24Jun 1, 202831$12,133$5,972$6,161$860,717

Frequently Asked Questions

What does 365/360 mean on a commercial loan?

365/360 usually means the lender counts the actual number of days in each payment period, but divides the annual rate by 360 to calculate daily interest. The loan accrues interest for 365 or 366 calendar days in a year, while each day uses a 360-day denominator.

Is 365/360 more expensive than Actual/365?

Yes, if the stated note rate is the same. Actual/360 produces a higher daily interest charge than Actual/365 because the rate is divided by 360 instead of 365.

Why do banks use Actual/360?

Actual/360 is common in commercial and money-market lending because it standardizes daily interest accrual. Borrowers should still compare the effective cost because the same stated rate produces more interest than Actual/365.

Does 365/360 change my monthly payment?

The scheduled payment may be quoted like a normal monthly amortizing loan, but the interest portion changes based on the actual days in the period. More interest means slightly slower principal reduction and more total interest over the loan.

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This tool is for educational purposes only. Results do not constitute a loan offer, pre-qualification, or guarantee of financing. Consult a licensed financial professional for advice specific to your situation.