Different notes count interest days differently. NoteHarbor supports the three standard day-count conventions, per loan:
- 30/360 (the default) — every month is 30 days, every year 360. The convention most seller-finance notes and standard amortization tables assume.
- Actual/365 — actual days elapsed over a 365-day year.
- Actual/360 — actual days elapsed over a 360-day year (common on commercial paper; yields slightly more interest per day).
Setting it
- Per loan — choose the convention in the loan wizard's terms. Match whatever the signed note says.
- Org default — set your organization's default under Settings; the wizard prefills it so your usual paper is one less thing to pick.
Changing it on an existing loan
The convention is a real term of the loan, so changing it is an audited term edit: it takes a note, and NoteHarbor regenerates the unpaid schedule under the new convention (paid rows are history and stay put).
If a migrated loan's interest is off by pennies per period, the day-count convention is the first thing to check against the original note.