To calculate the average daily balance the credit card company takes the sum of the cardholders balances at the end of each day in the billing cycle and divides that amount by the total number of. Below is a simple illustration on how Average Daily Balance is calculated. To calculate the credit card average daily balance you simply take the total balance at the end of each day of the billing cycle then divide by the number of days.
The equation would read.
To calculate the average daily balance the credit card company takes the sum of the cardholders balances at the end of each day in the billing cycle and divides that amount by the total number of. Below is a simple illustration on how Average Daily Balance is calculated. Lets say you need to calculate the average daily balance for a checking account over. The equation would read.