Interest – what is it and can it be avoided?

Want to avoid a large amount of intercalary interest? Intercalary interest refers to the interest accrued from the day the loan is used until the regular repayment or payment of the first annuity begins.

Intercalary interest depends on


  • loan amount
  • the nominal interest rate
  • payday
  • the day of the month when the annuity is debited

For smaller loan amounts, the intercalary interest rate is insignificant. With larger loans, it can be up to several thousand euros. If you want to avoid your intercalary interest being charged to the bank, you need to find out from the banker who is in charge of the annuity day of the month.

Most banks make annuities at the beginning or end of the month, and you will receive accurate information from the bankers.

Here are two examples of computing intracellular interest


Include the following information in the formula:

Loan principal amount × nominal interest rate × number of days remaining until the day the bank borrows annuities / 36500 = intercalary interest rate

Example: A loan of HRK 28,000.00 is paid on 15.03.2014. years . The nominal interest rate on which the monthly annuity is calculated is 8.99%. The Bank debits the annuity on the last day of the month, namely on 31.03.2014. In the aforementioned case, the number of days from loan placement to annuity borrowing is 15.

28000 × 8.99 × 15/36500 = 10.44 HRK

28000 × 0.0899 × 15/365 = 10.44 HRK

Example: A loan of HRK 725,000.00 is paid on 04/17/2014. years. The nominal interest rate on which the monthly installment is calculated is 6.25%. The Bank will debit an annuity every 5th of the month, namely 05.05.2014. In the aforementioned case, the number of days from loan placement to annuity borrowing is 17.

725000 × 6.25 × 17/36500 = $ 349.00

725000 × 0.0625 × 17/365 = $ 219.00

Intercalary interest is usually deducted from the amount the client receives on hand when paying off the loan.

For more information on interest rates in general, we definitely recommend the Interest Rate article – all about them and more, and after that it’s good to know how to choose a bank.

For larger loan amounts (home loans), banks try to avoid the inclusion of intercalary interest in the EIR, and it is a common practice for the client to pay the amount of intercalary interest in cash on the day of the loan.

Don’t overpay your loans!


“Pushing” a payment to avoid paying this expense is not an easy task. With the help of a Good Finance Group credit intermediary, you can easily calculate the intercalary interest rate and plan your loan repayment in advance, thus saving on this as well as on other expenses that are noticed in the credit analysis.

A more expensive TV has a better picture. More expensive credit has more installment and nothing more. With Progress you save money and time first and foremost. Complete the Good Finance Credit Questionnaire.