Period Accrual Summary
Results appear here after submission, above the form, for quick accounting review and export.
Calculator Inputs
Use the form below to estimate unpaid interest for loans, notes payable, or invoice financing arrangements.
Formula Used
The calculator supports simple interest and optional compound views for analysis.
Accrued Interest = Principal × Annual Rate × (Accrual Days ÷ Day-Count Divisor)
Accrued Interest = Principal × ((1 + Annual Rate ÷ Frequency)^(Frequency × Accrual Days ÷ Divisor) - 1)
Closing Payable = Opening Accrued Payable + Current Accrued Interest - Interest Paid
Actual/365 uses 365 days. Actual/360 and 30/360 use 360 days.
For accounting close work, many agreements use simple interest. Compound methods are included for advanced analysis when loan terms explicitly require compounding.
How to Use This Calculator
- Enter a reference label so your report is easy to identify.
- Input the principal balance and annual interest rate.
- Select the accrual start date and reporting end date.
- Choose the correct day-count basis from the agreement.
- Select simple or compound treatment based on contract terms.
- Add any opening accrued payable already on the books.
- Enter interest payments made during the same period.
- Submit the form to review expense, payable, graph, and journal entry.
- Use CSV or PDF buttons to save the result.
Example Data Table
This sample shows a simple-interest period-end accrual review.
| Reference | Principal | Rate | Basis | Method | Days | Opening Payable | Interest Paid | Current Accrued Interest | Closing Payable |
|---|---|---|---|---|---|---|---|---|---|
| Q1 Closing Review | $100,000.00 USD | 8.0000% | Actual/365 | Simple Interest | 45 | $250.00 USD | $100.00 USD | $986.30 USD | $1,136.30 USD |
| Vendor Note Accrual | $48,500.00 USD | 9.2500% | 30/360 | Monthly Compound | 30 | $0.00 USD | $0.00 USD | $374.25 USD | $374.25 USD |
FAQs
1. What is accrued interest payable?
It is interest expense that has been incurred but not yet paid by the reporting date. It appears as a current liability until payment is made or the liability is reversed.
2. When should accrued interest payable be recorded?
Record it at period-end whenever interest has accumulated between payment dates. This helps align expense recognition with the time benefit of the borrowed funds.
3. Which day-count basis should I choose?
Use the basis defined in the loan, note, or financing agreement. Actual/365, Actual/360, and 30/360 can produce different results even with the same dates and rate.
4. Does accrued interest always compound?
No. Many accounting accruals use simple interest unless the contract clearly states compounding. Review the agreement before choosing a compound method.
5. What if some interest was already paid?
Enter the payment in the interest paid field. The calculator subtracts it from the opening payable plus current-period accrual to estimate the closing liability.
6. Why is closing payable different from current-period interest expense?
Current-period expense reflects only the new accrual for the selected dates. Closing payable also includes any opening accrued balance and deducts any payments made during the period.
7. Can this calculator work for loans, notes, and financing invoices?
Yes. It is suitable for many interest-bearing obligations where principal, rate, dates, and payment activity are known and clearly documented.
8. Is this result enough for final financial reporting?
It is a strong working estimate, but final reporting should still follow signed agreements, internal accounting policies, and any audit or compliance requirements.