Cash Credit Interest Calculator
1. What is a Cash Credit Interest Calculator
It’s a tool that helps businesses calculate the interest payable on a cash credit (CC) account, based on the amount used, interest rate, and number of days.
2. What is a Cash Credit account
A Cash Credit (CC) account is a short-term working capital loan provided by banks, where interest is charged only on the amount utilized, not on the total limit.
3. How does the calculator work
Enter the amount utilized, annual interest rate, and the number of days you used the funds. The calculator computes the interest payable for that period.
4. What formula is used to calculate CC interest
The basic formula is: Interest = (Amount Utilized × Annual Interest Rate × Number of Days) / (365 × 100)
5. Is this calculator accurate for monthly billing
Yes, it provides an accurate estimate based on daily usage. Banks typically calculate interest on a daily balance basis and debit it monthly.
6. What information do I need to use this tool
You need to know the amount utilized from your CC limit, the applicable annual interest rate, and the number of days for which funds were used.
7. Can this tool be used for Overdraft (OD) accounts
Yes, since OD and CC interest calculation methods are similar, you can use this calculator for overdraft interest as well.
8. Is this calculator free to use
Yes, this Cash Credit Interest Calculator is 100% free, requires no login, and can be used any number of times online.