Use this free average daily balance calculator to find the day-weighted mean of an account balance over a statement period. Multiply each balance by the number of days it was held, add those products, then divide by the total days. Banks use this method for interest and minimum-balance calculations.
How the average daily balance method works
For each segment of the statement period, multiply the balance by the number of days it stayed at that level. Add the products together, then divide by the total number of days in the period. The result is the average daily balance.
Daily balance calculator vs average daily balance calculator
A daily balance calculator records or updates the balance for an individual day. An average daily balance calculator combines every daily balance in the statement period into one day-weighted average. Use the day-weighted result when a bank asks for an average balance or applies the average daily balance method.
Where to find your daily balances
Daily balances come from the running balance column of your bank statement. Convert the PDF statement to a spreadsheet, review the extracted balances, then group consecutive days that held the same balance before using the calculator.