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 ...

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.

How to Calculate Simple Interest Savings. Savings accounts will earn interest on the amount of money deposited into the account. The formula to calculate simple interest in a savings account is ...

Learn more about the difference between simple interest vs. compound interesnt. This is important for all investors to understand.

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.