Formula to calculate simple interest. Suppose you take a 20000 loan for 5 years at 5 annual interest rate. Then enter a number of years months or days that the calculation is to run.
It is calculated on the principal amount.
With installment loans youll generally have a fixed repayment term. Simple Interest Calculator EquationPrincipal Interest AP1 rt Where. Determine the total amount borrowed. Convert the interest rate to a decimal value.