Interest period

Interest - calculation.

A period of time for which an amount of interest payable or receivable is calculated and becomes payable or receivable.

For example, a day, a week or a month.

Contrasted with the reference period, which is the period in relation to which the rate is quoted.

Interest - counting days - conventions

"The day count convention determines how interest accrues over time in a variety of transactions...

In wholesale markets, interest is usually expressed to accrue at a rate per annum (the reference period).

It is often due and payable at shorter intervals, usually a number of months (the interest period)."

Day count conventions - the Treasurer's wiki.

See also

• Accrue
• Accrued interest
• Day count conventions
• Effective annual rate
• Interest
• Periodic interest
• Periodic rate
• Reference period