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How does Earnest calculate interest?

Because Earnest does not charge origination fees, our interest rates are equal to our APR, or "annual percentage rate." For details on this, check out our blog post on the topic.

To calculate your accrued interest, we use the "simple daily interest" method. This means that interest accrues each day in an amount equal to 1/365 times your APR multiplied by your remaining principal owed. For our bootcamp loans, interest accrues at a simple daily rate even while you are in a deferment period.

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