Interest accrues hourly, at the start of a new hour, based on your outstanding loan principal and is not compounded on earlier interest charges. If you repay your loan before the cutoff time on a certain day, a full day’s interest will still be charged for that day. Interest rates are determined by the initial loan-to-value (LTV) ratio of your loan and the amount of your CRO locked up in the Crypto.com Exchange as of the date of the loan drawdown.

If the annual percentage rate (APR) is 8%, the hourly interest rate is 0.000913242% (Hourly Interest Rate = APR ÷ 365 ÷ 24 , regardless of the number of hours in any given year).

**Hourly Interest**

**= (Outstanding Loan Principal) × (Hourly Interest Rate)**

**= (Outstanding Loan Principal) × (APR ÷ 365 ÷ 24)**

*For example:*

If a user takes out a loan of 10,000 USDT with 6% APR at 12:05:00 UTC, the hourly interest rate is 0.000684932% and the outstanding interest will be 0.068493151 USDT at the beginning.

**Accrued Interest**

= 10,000.00000000 USDT × 0.000684932% = 0.068493151 USDT

At 13:00:00 UTC the next hour, another hour of interest will accrue based on the outstanding loan principal. Let’s assume this user has yet to make any repayments to this loan.

**Outstanding Loan Principal**

= 10,000.000000000 USDT

**Outstanding Interest**

= 0.068493151 USDT + (Hourly Interest)

= 0.068493151 USDT + (10,000.000000000 USDT × 0.000684932%)

= 0.136986351 USDT

You can find the latest interest rates that we charge for Crypto.com Lending **here**.

You can enjoy discounted interest rates if the amount of your CRO Lockup in the Crypto.com Exchange is at least 100,000 CRO. Learn more about CRO lockup and its benefits **here**.