Day-count conventions define how the system converts calendar time into interest calculations. Under 30/360, every month is assumed to have 30 days and the year 360 days, commonly used in corporate and municipal lending. Under Actual/365, interest is calculated using the actual number of days divided by 365. These conventions materially affect interest amounts over time. The user has the option to apply the proper convention according to their needs. Other day-count conventions available include Actual/Actual and Actual/360.