What is Exact Day


Interest can be calculated various ways. In a 365 day year, lenders sometimes treat the month as an even unit consisting of 30 days in each month. This way interest is charged monthly assuming each month contains 30 days. This however, is not the actual case, some months as you know have 30 days and others have 31 days. In February of course we have 28 days and every leap year we have 29 days.
So lenders have recently started computing interest on an Exact Day method. In this method, the number of days in every month are kept the same as the actual calendar month. If your loan agreement states the Exact Day method, or you know that your lender charges interest in this manner, then you can select the Exact Day method of calculation in all forms that have the following field.
When you select the Exact Day method of computation, the field will have the word "Yes" placed inside of it.
Remember that this method of computation, only effects the interest shown on the schedule and not in the calculated value of Payment, Principal etc. 