A method for calculation of SOFR (secured overnight financing rate)- a type of daily SOFR– that represents a daily weighted average (weights applied for non-working days: weekends and holidays) of daily SOFR over an interest accrual period, that is calculated using simple interest over the current interest period- i.e., without compounding. Rate calculation can be based on various conventions in terms of lookback days or payment delays to account for the differences between a gap between due payment and identified payments.

The broader category of daily SOFR includes daily simple SOFR and daily compounded SOFR).

This rate is also known as daily average SOFR.