365/360 Commercial Loan Calculator
Enter the commercial loan terms to compare Actual/360, Actual/365, and 30/360 accrual. The result shows the fixed payment, maturity balloon, total interest, and the lower 365/360 note rate that matches an Actual/365 quote.
Actual/360 regular payment$4,060.72
- Balloon due at maturity
- $435,086.15
- Actual/360 interest through maturity
- $178,729.26
- Extra interest versus Actual/365
- $2,572.08
- Extra interest versus 30/360
- $2,680.81
- Actual/365 regular payment
- $4,028.80
- 30/360 regular payment
- $4,027.13
- Equivalent 365/360 note rate
- 7.4%
- First-period interest
- $3,125.00
Convention comparison
| Convention | Regular payment | Maturity balloon | Total interest | Total cash paid |
|---|---|---|---|---|
| Actual/360 | $4,060.72 | $435,086.15 | $178,729.26 | $678,729.26 |
| Actual/365 | $4,028.80 | $434,429.19 | $176,157.18 | $676,157.18 |
| 30/360 | $4,027.13 | $434,420.53 | $176,048.45 | $676,048.45 |
Assumes a fixed note rate, scheduled payments on the modeled dates, and no fees or prepayments.
The first payment date is adjusted to the last valid day when the entered day does not exist in that month.
How to use this calculator
- Enter the principal, stated note rate, payment frequency, maturity term, and amortization period.
- Set the first payment date and the actual number of days from funding to that first payment.
- Confirm that the term and amortization period produce whole payment counts for the selected frequency.
- Compare the result table to see how each day-count convention changes payment, balloon, and interest.
How the 365/360 loan calculation works
A 365/360 commercial loan usually means interest accrues on the actual number of calendar days in each payment period, but the daily rate is based on a 360-day year. That makes the daily charge higher than Actual/365 at the same stated note rate. This calculator builds a dated payment schedule, including leap years and short months, then prices the payment from the period-by-period interest factors.
For Actual/360, let P be the loan amount, r be the annual note rate as a decimal, and d_k be the actual number of days in payment period k. The period rate is q_k = r × d_k ÷ 360. Define G_k as the product of 1 + q_j from period 1 through period k. The level payment is:
M = P ÷ Σ(1 ÷ G_k)
The sum runs through the amortization payment count, not just the maturity date. After each scheduled payment the balance is updated as B_k = B_(k−1) × (1 + q_k) − M. The balloon is the remaining balance after the maturity payment, floored at zero for display.
What the comparison shows
The calculator repeats the same schedule under Actual/365, where q_k = r × d_k ÷ 365, and under the U.S. 30/360 convention, where each period is converted to a standardized 30-day-month count. The comparison table keeps the loan amount, note rate, payment frequency, maturity, and amortization period the same, so the difference comes from the day-count convention.
The equivalent-rate result answers a common term-sheet question: what 365/360 note rate would create the same per-day charge as an Actual/365 quote? It is r × 360 ÷ 365. For example, an Actual/365 rate of 7.50% has the same daily charge as about 7.40% on Actual/360.
What moves the result most
The biggest drivers are the stated rate, the gap between maturity and amortization, and the first interest period. A longer amortization lowers the regular payment but leaves a larger balloon. A long first period raises the first-period interest and affects the payment calculation because the first discount factor is larger. Actual-day schedules also vary slightly by calendar placement; periods that include 31 days or February 29 do not cost the same as 30-day periods.
What this calculator leaves out
The estimate assumes a fixed note rate and payments made exactly on the modeled dates. It does not include origination fees, points, late charges, default interest, prepayment premiums, escrow, rate changes, or lender-specific rounding rules. Some servicing systems also post interest differently around weekends, holidays, payment changes, and end-of-month dates, so compare the output with the note and the lender's amortization schedule.
Worked example
Suppose a $500,000 commercial loan has a 7.50% note rate, monthly payments, a 5-year maturity, a 20-year amortization period, a first payment on November 1, 2026, and 30 days from funding to the first payment. On an Actual/360 basis, the regular payment is about $4,061 and the maturity balloon is about $435,086. Interest through maturity is about $178,729.
Using the same dates and terms, the Actual/365 payment is about $4,029, and the 30/360 payment is about $4,027. The Actual/360 schedule costs about $2,572 more than Actual/365 through maturity and about $2,681 more than 30/360. A 7.50% Actual/365 daily charge is equivalent to about 7.40% under Actual/360.
Common questions
What does 365/360 mean on a commercial loan?
It usually means interest is charged for the actual number of days in each period, but the daily rate is the annual note rate divided by 360. Because a calendar year normally has 365 days, that convention produces more interest than dividing by 365 at the same stated rate.
Why does Actual/360 cost more than Actual/365?
Actual/360 and Actual/365 count the same calendar days, but they divide the annual rate by different denominators. Dividing by 360 creates a larger daily rate than dividing by 365, so the same principal and dates accrue more interest.
How is a balloon payment calculated under Actual/360?
The calculator first sizes the regular payment over the amortization period using Actual/360 period rates. It then applies that payment only through the maturity term and reports the balance remaining after the last scheduled maturity payment as the balloon.
What rate concession makes 365/360 equivalent to Actual/365?
Multiply the Actual/365 rate by 360 divided by 365. For example, a 7.50% Actual/365 quote has the same daily charge as roughly 7.40% on Actual/360, before considering fees and other loan terms.
Is 365/360 the same as 30/360?
No. Actual/360 uses the real number of calendar days in each period and divides by 360. 30/360 replaces the calendar with standardized 30-day months, so it can match Actual/360 in some periods and differ in others.