---
title: Calculation Method for Loan Interest in REIA
description: "What method does the Real Estate Investment Analysis (REIA) product use to calculate loan interest - 30/360, Actual/360 or Actual/365? Answer: 30/360 The 30/360 method results in a amount very close to Actual/365 - close as in about $20 for…"
url: "https://www.realdata.com/docs/calculation-of-loan-interest/"
updated: "2024-06-06"
category: REIA Express
---

# Calculation Method for Loan Interest in REIA

What method does the Real Estate Investment Analysis (REIA) product use to calculate loan interest - 30/360, Actual/360 or Actual/365?

Answer: 30/360

The 30/360 method results in a amount very close to Actual/365 - close as in about $20 for a million dollar loan with a ten-year term.

The Actual/360 method by contrast would produce a difference that might make a difference to you - it would be thousands of dollars on the same million dollar loan.