To calculate per-diem interest, take the interest rate (be sure to express it as a decimal, so 10% becomes 0.10) and divide by 365 to determine the daily interest rate.

The formula for calculating simple interest in a savings account is Interest = P * R * T. Multiply the account balance by the interest rate by the time period.

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.

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.

Interest = P x (r/t) How do you calculate 4% interest on a loan? To calculate interest, you need to know variables such as interest rate, principal loan amount and loan term.

For instance, all federal student loans charge simple interest. How to calculate amortizing interest on a loan Many lenders charge interest based on an amortization schedule.

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

Calculating student loan interest can be pretty straightforward, but how you calculate it will vary depending on whether you’re dealing with simple or compound interest.

However, most other loan accounts (like mortgages) calculate interest on a monthly basis, so this calculation method will produce an exact result.

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