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.

Lenders calculate how much interest you’ll pay with each payment in two main ways: simple or on an amortization schedule. Short-term loans often have simple interest. Larger loans, like ...

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

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.

There is simple interest, which, as the name implies, is the simpler form of interest to understand and calculate, and then there is compound interest.

Use our loan interest calculator to see how much interest you’ll owe each month and over the life of your loan.

Learn how to calculate student loan interest on federal and private loans, as well as the factors that affect interest costs.

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