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.

If a lender uses the simple interest method, it’s easy to calculate loan interest. You will need your principal loan amount, interest rate and loan term to calculate the overall interest costs.

Are you planning to borrow money for a car, house, or personal expense? Grab a loan calculator; it helps you budget.

To decide which type of CD is best for you, consider its value. Here’s how to calculate CD interest, helping you better manage your hard-earned money.

When it comes to mortgage payments, every homeowner deals with two interest rates: fixed and variable. Each rate also has its own percentage of advantages and disadvantages, in the light of which ...

A simple technique to convert a lease's finance chart into a more meaningful annual interest rate.

Experts at Carleton acknowledged calculating add-on interest isn’t as prevalent as it once was with finance companies and other lenders using simple-interest calculations more often nowadays.