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

The formula for simple interest is principal times the interest rate times the period. Usually period is expressed as a fraction of 12. For example, one month of interest will be 1/12.

For example, if you borrow $1,000 from a friend and agree to pay 6% simple interest for two years, the formula above tells you that you'll pay $120 in total interest ($1,000 x 0.06 x 2).

But not all interest rates are the same. In the world of finance, you’ll run into two types of interest: simple and compounding. Here’s a helpful overview of simple interest vs. compound interest.

Simple interest is the interest rate without compounding, meaning it’s applied just once and only to the principal. So you don’t need a formula to figure out what it is, but you do need a ...

When looking at a narrow time frame like a single bank statement period, the compound interest formula will give similar results to the simple interest formula. Using the same data from the ...

On the surface, an interest rate is just a number. How that number applies to debt or equity opens up a world of possibilities. The first consideration is always whether it’s simple interest vs.

Here’s another simple interest example: If a $10,000 deposit is in an account that earns only 0.15% interest per year, the interest rate would be expressed as 0.0015.