Average Daily Balance Method

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Last updated: 21 August 2026

The Method

Har din ke balance ka average → daily rate (APR/365) se interest. Formula: ADB × Daily Rate × Days.

Example

DaysBalance
1-10₹0 (paid full)
11-20₹20,000
21-30₹15,000
ADB(0+20000+15000 avg) ≈ ₹11,667

Interest = 11,667 × 0.115% × 30 ≈ ₹402

Why Matters

Earlier payment = lower average daily balance = less interest. Mid-cycle payment smart hai.

Frequently Asked Questions

Q: How calculated?

A: Daily balances ka average → daily rate.

Q: Does mid-month payment help?

A: Haan — kam ADB, kam interest.

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