Average Daily Balance is calculated based on the beginning period value of each market day within a billing period. The total of these beginning period values is then averaged across the billing period (I.E. monthly, quarterly, etc.) to provide a final result.
Calculation Includes:
Beginning Period Value (Based on: As of Date)
Billing Period (Number of Days)
Please Note that weekends and holidays are not included in our calculation specifically for Average Daily Balance.
Formula Details:
AverageDailyBalance is the weighted average daily balance in the time series between the two provided dates, inclusive. Return is the zero value (which is zero) when the dates within the time series do not exist, or if there is nothing to add.
There are two items to calculate the average daily balance:
Ending balance (total reported balance)
Weight
1.0 for live balances
for historical balances, this value is calculated according to:
start_dt = beginning of month
=> current data - beginning of month
Since we do not have historical balance for billing the weight is always 1.
Calculation:
Add all the balances for an account for the billing period to get a total balance across the account.
Add 1 to the weight every time there is a balance. In other words, weight is the number to balance the item available for an account for the billing period.
ADB = ( total_balance / total_weight )