Interest Rate Factor

The interest rate factor is used to calculate the amount of interest that accrues on your loan. It is determined by dividing your loan's interest rate by 365.25 (the number of days in a year). See the following table to see some examples of interest rate factors.

Interest Rate Converted to Decimals Divide by 365.25 Interest Rate Factor
8.99%.0899.0899 / 365.25.00024613
8.25%.0825.0825 / 365.25.00022587
7.59%.0759.0759 / 365.25.00020780