Interest is paid on the total amount of money borrowed also known as the principal. When calculating simple interest by days use the number of days for t and divide the interest rate by 365. This online calculator allows the borrower to budget the money in such a way you can get to know how much interest amount have to be paid on your loan.
To calculate interest multiply the principal by the interest rate and the term of the loan.
The formula is indeed simple because it only involves multiplication. Total Amount SI P SI Simple Interest. Includes taxes insurance PMI and the latest mortgage rates. After the Simple Interest is calculated we will have to Calculate the Total amount.