Learn how to calculate principal and interest on loans, including simple interest and amortized loans, and understand the impact on your monthly payments and loan costs.

A simple interest loan calculates interest based only on the principal. Learn how it works, get examples and weigh the pros and cons.

With a simple interest loan, interest is based only on principal, and you can easily calculate it to find out the true cost of borrowing.

Simple interest refers to interest that's calculated solely based on the principal, and not any interest that has already accrued. The general formula for computing simple interest is: For example ...

A simple interest loan only charges interest on your original principal, not the entire balance. You'll often see these for car or personal loans. Keep reading.

Simple interest is paid only on the principal of an investment or loan. Compound interest is calculated on both the initial principal and accumulated interest. Over time, compound interest ...

You can compute simple interest by multiplying the principal amount by the annual interest rate and by the number of years for which you invest or borrow money.

Doing the math and crunching the numbers when it comes to figuring out your loan's interest can be complicated. Here's how to calculate interest on a loan.

How simple interest and compound interest differ When it comes to most savings accounts and some other investments, simple interest consists of interest earned on the principal amount and not on ...

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