Accrued Interest Calculator

✖Face Value is the nominal value of a bond, representing the amount the issuer agrees to repay at maturity.ⓘ Face Value [F]			+10% -10%
✖Total Annual Coupon Rate is the sum of all coupon payments made by a bond in a year, expressed as a percentage of the bond's face value.ⓘ Total Annual Coupon Rate [C]			+10% -10%
✖Days since Last Payment Date is the number of days that have elapsed since the most recent coupon or interest payment was made on a bond.ⓘ Days since Last Payment Date [D]			+10% -10%
✖Number of Coupon Payments per Year refers to the frequency with which a bond pays interest to its holders within a single year.ⓘ Number of Coupon Payments per Year [M]			+10% -10%
✖Accrual Period is the time interval during which interest accrues on a financial instrument, such as a bond or loan.ⓘ Accrual Period [T]			+10% -10%

✖Accrued Interest is the interest that has accumulated on a bond since the last coupon payment.ⓘ Accrued Interest [AI]

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Formula

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Accrued Interest

Formula

`"AI" = ("F"*"C"*"D")/("M"*"T")`

Example

`"5.10989"=("1500"*"0.06"*"31")/("3"*"182")`

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Accrued Interest Solution

STEP 0: Pre-Calculation Summary

Formula Used

Accrued Interest = (Face Value*Total Annual Coupon Rate*Days since Last Payment Date)/(Number of Coupon Payments per Year*Accrual Period)
AI = (F*C*D)/(M*T)
This formula uses 6 Variables

Variables Used

Accrued Interest - Accrued Interest is the interest that has accumulated on a bond since the last coupon payment.
Face Value - Face Value is the nominal value of a bond, representing the amount the issuer agrees to repay at maturity.
Total Annual Coupon Rate - Total Annual Coupon Rate is the sum of all coupon payments made by a bond in a year, expressed as a percentage of the bond's face value.
Days since Last Payment Date - Days since Last Payment Date is the number of days that have elapsed since the most recent coupon or interest payment was made on a bond.
Number of Coupon Payments per Year - Number of Coupon Payments per Year refers to the frequency with which a bond pays interest to its holders within a single year.
Accrual Period - Accrual Period is the time interval during which interest accrues on a financial instrument, such as a bond or loan.

STEP 1: Convert Input(s) to Base Unit

Face Value: 1500 --> No Conversion Required
Total Annual Coupon Rate: 0.06 --> No Conversion Required
Days since Last Payment Date: 31 --> No Conversion Required
Number of Coupon Payments per Year: 3 --> No Conversion Required
Accrual Period: 182 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

AI = (F*C*D)/(M*T) --> (1500*0.06*31)/(3*182)

Evaluating ... ...

AI = 5.10989010989011

STEP 3: Convert Result to Output's Unit

5.10989010989011 --> No Conversion Required

FINAL ANSWER

5.10989010989011 ≈ 5.10989 <-- Accrued Interest

(Calculation completed in 00.004 seconds)

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Credits

Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 50+ more calculators!

Verified by Aashna

IGNOU (IGNOU), India

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< 14 Fixed Income Securities Calculators

Accrued Interest

Go Accrued Interest = (Face Value*Total Annual Coupon Rate*Days since Last Payment Date)/(Number of Coupon Payments per Year*Accrual Period)

Conversion Premium

Go Conversion Premium = Conversion Value-Market Price of Convertible Bond

Conversion Ratio

Go Conversion Ratio = Par Value at Maturity/Conversion Price of Equity

Convexity Adjustment

Go Convexity Adjustment = Bond's Convexity*(Change of Yield^2)*100

Callable Bond Price

Go Callable Bond Price = Non Callable Bond Price-Call Option Price

Nominal Yield

Go Nominal Yield = (Total Annual Interest Payments/Face Value)*100

Expected Loss

Go Expected Loss = Default Probability*Loss Severity given Default

Putable Bond Price

Go Putable Bond Price = Non Putable Bond Price+Put Option Price

Conversion Value

Go Conversion Value = Market Price per Share*Conversion Ratio

Floating Interest Rate

Go Floating Interest Rate = Reference Rate+Fixed Spread

Dirty Price

Go Dirty Price = Clean Price+Accrued Interest

Clean Price

Go Clean Price = Dirty Price-Accrued Interest

Semi Annual Bond Equivalent Yield

Go Semi Annual Bond Equivalent Yield = Yield per Semi Annual Period*2

Loss Severity

Go Loss severity = 1-Recovery Rate

Accrued Interest Formula

Accrued Interest = (Face Value*Total Annual Coupon Rate*Days since Last Payment Date)/(Number of Coupon Payments per Year*Accrual Period)
AI = (F*C*D)/(M*T)

What is Accrued Interest ?

Accrued interest refers to the interest that has accumulated on a financial asset, such as a bond or loan, but has not yet been paid or received. It represents the portion of the next interest payment that has been earned by the holder of the asset but remains unpaid. Accrued interest accrues over time, typically from the last interest payment date up to the present, based on the interest rate and the number of days in the accrual period. For bondholders, accrued interest is an important consideration when buying or selling bonds, as it represents an additional amount that may need to be paid by the buyer or received by the seller on top of the bond's quoted price.

How to Calculate Accrued Interest?

Accrued Interest calculator uses Accrued Interest = (Face Value*Total Annual Coupon Rate*Days since Last Payment Date)/(Number of Coupon Payments per Year*Accrual Period) to calculate the Accrued Interest, The Accrued Interest is the interest earned but not yet paid or received on a financial asset, such as a bond, since the last interest payment date. Accrued Interest is denoted by AI symbol.

How to calculate Accrued Interest using this online calculator? To use this online calculator for Accrued Interest, enter Face Value (F), Total Annual Coupon Rate (C), Days since Last Payment Date (D), Number of Coupon Payments per Year (M) & Accrual Period (T) and hit the calculate button. Here is how the Accrued Interest calculation can be explained with given input values -> 5.10989 = (1500*0.06*31)/(3*182).

FAQ

What is Accrued Interest?

The Accrued Interest is the interest earned but not yet paid or received on a financial asset, such as a bond, since the last interest payment date and is represented as AI = (F*C*D)/(M*T) or Accrued Interest = (Face Value*Total Annual Coupon Rate*Days since Last Payment Date)/(Number of Coupon Payments per Year*Accrual Period). Face Value is the nominal value of a bond, representing the amount the issuer agrees to repay at maturity, Total Annual Coupon Rate is the sum of all coupon payments made by a bond in a year, expressed as a percentage of the bond's face value, Days since Last Payment Date is the number of days that have elapsed since the most recent coupon or interest payment was made on a bond, Number of Coupon Payments per Year refers to the frequency with which a bond pays interest to its holders within a single year & Accrual Period is the time interval during which interest accrues on a financial instrument, such as a bond or loan.

How to calculate Accrued Interest?

The Accrued Interest is the interest earned but not yet paid or received on a financial asset, such as a bond, since the last interest payment date is calculated using Accrued Interest = (Face Value*Total Annual Coupon Rate*Days since Last Payment Date)/(Number of Coupon Payments per Year*Accrual Period). To calculate Accrued Interest, you need Face Value (F), Total Annual Coupon Rate (C), Days since Last Payment Date (D), Number of Coupon Payments per Year (M) & Accrual Period (T). With our tool, you need to enter the respective value for Face Value, Total Annual Coupon Rate, Days since Last Payment Date, Number of Coupon Payments per Year & Accrual Period and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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