Business logic is logic related to the information being manipulated within an application. This is as opposed to the logic associated with any of the external interfaces of a system, such as the user or the database..

The rules associated with the data in a database that typically encode business policies. An example is automatically adding late fees for overdue items.

Business Logic is a non-technical term generally used to describe the functional algorithms which handle information exchange between a database and a user interface. There exists no definition of business logic in any programming language specification or API, nor in any academic research. However, usage of the term persists in trade publications where several individuals have tried to informally advance a meaning that could be standardised.