You may have noticed that the total balance shown in the Anyfin app increases slightly every day. This happens because your loan accrues daily interest.
What does it mean? 🤔
Instead of adding interest only once a month, it accrues on your remaining balance every single day. This way, the balance shown in the app is always up to date.
How is daily interest calculated? 📊
First, we calculate how much interest would accrue in a year (e.g. €1,000 loan with 10% interest = €100 per year).
That yearly interest is divided by the number of days in a year (100 € ÷ 365 ≈ €0.27 per day).
This daily amount is then added to your balance.
👉 When you make a payment, your loan balance decreases, and the following days’ interest is calculated from this smaller amount. That means your daily interest goes down as you repay.
Do I pay the interest twice? ❌
No. The daily interest is only shown in real time in the app so you can always see your actual balance. When you pay your monthly installment, it covers both the principal and the interest accrued up to that point.
✨ This way, you always know exactly where you stand – with no surprises.