How do you calculate the average daily balance?

Write down the balance at the end of every day in the period, including days with no transactions, add them up, and divide by the number of days. A 30-day month with 1,000 for 10 days and 4,000 for 20 days averages (10 × 1,000 + 20 × 4,000) ÷ 30 = 3,000.

Why do lenders ask for the average daily balance?

It shows what the account normally holds, not what it held on the day the statement was printed. A balance topped up just before the closing date raises the closing balance far more than the average.

Is this the same as a credit card's average daily balance?

Not necessarily. Card issuers compute the figure they charge interest on by their own rules, such as whether new purchases are included, which are set out in the card agreement. This calculator uses end-of-day balances of the account as exported.

My export has no balances. What opening balance do I use?

The opening or beginning balance printed at the top of the statement for the first day in the file. Every later day's balance is worked out from it and the transactions.

Can it average several months?

Yes, if the months are in one file, or merged into one CSV. Set the dates to the whole range. To check that no month is missing first, use the Statement Gap Finder.

Is my statement uploaded?

No. The calculation runs in your browser.

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Average daily balance, from the statement itself.

Drop in a bank export and get the average daily balance, the low point, and every day's balance.

Drop your statement export hereor browse a file from your device.csv.ofx.qbo.qfx.qifUp to 20 MB per file · One file at a time

Read in your browser. Never uploaded.

A running balance column, or an OFX file's closing balance, fills in the opening balance for you.

How the average is worked out

Every day counts

Each calendar day in the period, weekends and quiet days included, gets the balance at its close. The average is the total of those daily balances divided by the number of days.

Not an average of transactions

A salary that sits in the account for three weeks weighs three weeks; one that leaves the next day weighs a day. That is the difference between an average daily balance and averaging the balance column.

The opening balance, found for you

An opening balance row, a running balance column, or an OFX file's closing balance give the starting point. With none of those, type the opening balance printed on the statement.

Any period inside the file

Narrow the dates to average one statement cycle or one month. Transactions before the start still move the balance, so a later start date begins from the right figure.

The low points too

The lowest and highest end-of-day balances with their dates, and how many days closed below zero, the figures an underwriter looks at beside the average.

Every day's balance

Hover the chart for any day, or download the full list of end-of-day balances as a CSV to paste into a loan file or a spreadsheet.

Questions

How do you calculate the average daily balance?: Write down the balance at the end of every day in the period, including days with no transactions, add them up, and divide by the number of days. A 30-day month with 1,000 for 10 days and 4,000 for 20 days averages (10 × 1,000 + 20 × 4,000) ÷ 30 = 3,000.
Why do lenders ask for the average daily balance?: It shows what the account normally holds, not what it held on the day the statement was printed. A balance topped up just before the closing date raises the closing balance far more than the average.
Is this the same as a credit card's average daily balance?: Not necessarily. Card issuers compute the figure they charge interest on by their own rules, such as whether new purchases are included, which are set out in the card agreement. This calculator uses end-of-day balances of the account as exported.
My export has no balances. What opening balance do I use?: The opening or beginning balance printed at the top of the statement for the first day in the file. Every later day's balance is worked out from it and the transactions.
Can it average several months?: Yes, if the months are in one file, or merged into one CSV. Set the dates to the whole range. To check that no month is missing first, use the Statement Gap Finder.
Is my statement uploaded?: No. The calculation runs in your browser.

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