Daily vs Monthly Debt Payment Calculator
See how much you save by paying debt daily instead of monthly.
Even on $5,000 at 24% APR, daily payments save $95. Small balances or low APRs mean smaller savings, but the math still works. Every dollar of principal you kill early is a dollar that stops generating interest.
How does this work?
Interest accrues daily
Your lender calculates interest every single day. Your 24% APR becomes 0.0658% per day on whatever balance you owe that day.
Monthly payments leave the balance high for 30 days
With monthly payments, you owe the full balance all month. Interest compounds on that full amount for ~30 days before your payment reduces it.
Daily payments shrink the balance every day
By paying $6.67/day instead of $200/month, you reduce principal immediately. Tomorrow's interest is calculated on a slightly lower balance. This compounds over time.
Key insight
You spend the same amount per month either way. The only difference is WHEN principal gets reduced. Earlier reduction = less interest = faster payoff.
This calculator assumes your lender credits payments immediately. Most credit cards do. Some loan servicers batch payments monthly or on specific dates. Check with your lender before switching to daily payments.
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