How Simple Interest Works: An Example Suppose you take out a $5,000 loan at 6% interest for two years. To calculate the amount of interest you will pay, use the simple interest formula above.

What is the easiest way to calculate interest? The easiest way to calculate interest is by following the simple interest formula: Interest = principal loan amount x loan term x interest rate ...

How does a simple interest loan work? With a simple interest loan, it’s easy to calculate how much interest you will pay. All you need to know is the principal amount — the original amount you ...

Learn what simple interest is and how to calculate it using examples with a simple interest formula. You can also use a simple interest calculator.

Learn how to calculate the Simple Interest in Excel either for a single entry or a range or entries, between two dates, using this forumula.

The formula for calculating simple interest in a savings account is Interest = P * R * T. Multiply the account balance by the interest rate by the time period.

Calculating student loan interest can be pretty straightforward, but how you calculate it will vary depending on whether you’re dealing with simple or compound interest.

Curious about how the interest on your loan works? Learn how interest rates are determined and how to calculate interest on a loan yourself.