What Is Daily Interest and How Is It Calculated?

If you have a Fig loan, interest is applied to your balance each day. This daily interest is based on your Annual Percentage Rate (APR) and your current principal balance. Understanding how this works can help you better anticipate your repayment schedule and the long-term cost of your loan.

What Is Daily Accrued Interest?

Daily interest is the amount of interest that is added to your loan each day. Rather than being charged once per month, interest accrues daily and is included in your regular payments.

Fig loans use simple interest, not compound interest. This means interest is calculated only on your outstanding principal balance, not on previously accrued interest or the total loan balance. Interest does not compound.

How is Daily Interest Calculated

Fig uses the following formula to calculate daily simple interest:

• Daily Interest = (APR ÷ 365) × Principal Balance

Example

Let’s say your APR is 19.99% and your current principal balance is $10,000. Here’s how daily interest would be calculated:

• Daily Interest = (19.99 ÷ 365) × 10,000
• Daily Interest = 0.05476% × 10,000
• Daily Interest = $5.48 per day

That means $5.48 in interest would be added to your balance each day, until your next payment is made.

When Does Interest Accrue?

• Interest accrues every day, including weekends and holidays
• If you defer a payment or miss a scheduled payment, interest will continue to build on the outstanding principal until a payment is received
• Paying more than the minimum amount or making extra payments can reduce the total interest you pay over time

Things That Affect Daily Interest

• Balance changes: If you make a payment, the amount of interest charged daily will go down.
• Missed payments or deferrals: Your balance stays higher for longer, so more interest accrues.
• Extra payments: Making larger or more frequent payments reduces your balance and the amount of interest you pay over time.

How to View Interest Details

You can review your loan balance, payment schedule, and interest information by logging into your Fig Account. Your account displays a breakdown of each payment, including how much goes toward interest and principal.

If you have questions about how interest affects your loan, feel free to reach out to our support team at support@fig.ca.