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.

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

Need to calculate APR quickly & easily? Learn how to calculate APR on a loan or credit card so you can save the most money. Read this guide to learn more!

Calculate APR from simple interest rates by extending or reducing the time period to a single year. For example, a CD may offer 1.5 percent simple interest over a three-month period.

Using a loan calculator is one of the easiest ways to estimate loan payments and total loan costs before borrowing. The loan calculator below can help you project costs for an installment loan ...

To calculate per-diem interest, take the interest rate (be sure to express it as a decimal, so 10% becomes 0.10) and divide by 365 to determine the daily interest rate.

How To Calculate Simple Interest on a CD Simple interest is the interest rate without compounding, meaning it’s applied just once and only to the principal.

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.

Wondering how much interest you could earn in a savings account? Here's how to crunch the numbers to calculate your earnings.

While simple interest is generally simple to calculate over the life of a loan or investment, it can also be useful to know how much interest is accruing on a daily, or "per-diem," basis.