> For the complete documentation index, see [llms.txt](https://docs.grofidex.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.grofidex.io/features/loans/how-to-calculate-loan-interest.md).

# How to calculate loan interest?

The system will calculate interest based on the loan amount and loan term, it will not depend on when you repay the loan early.

> **For example**
>
> Suppose you borrow 100 U2U with a loan term of 10 days with an interest rate of 10% of the loan, then to repay the loan you need to pay 110 U2U within 10 days from the date of the loan.
>
> There is NO difference when you repay on the first day and the 10th day, you still need to pay 110U2U to complete your loan obligation
>
> Normally, users will choose to maximize the benefits of the loan by paying on the last day. Remember to set a schedule for yourself to avoid exceeding the repayment deadline, the loan will be recalled and the loan asset liquidated - the collateral NFT.