# Calculate Interest Due On Loan

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Identifying the Daily Interest Rate. To identify your daily interest rate, divide your APR by 365. For example, if your APR is 20 percent, your daily interest rate is 0.055 percent — 20 divided by 365. Numerically, that equals 0.00055. Video of the Day

The Simple Interest Calculation Formula is: Loan Amount (in dollars and cents) x Interest Rate x Time (in days) = Total Interest You must select the values to enter the Starting Month, Day and Year, and the Ending Month, Day and Year for the time of loan. Enter the amount of the loan and the simple interest rate. Click on Calculate.

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Interest is also a monthly (if not daily) event, and those recurring interest calculations add up to big numbers over the course of a year. Whether you’re paying interest on a loan or earning interest in a savings account, the process of converting from an annual rate to a monthly interest rate is the same.

Figure the monthly interest by multiplying the monthly rate by the loan balance at the start of the month (0.5 percent times \$100,000 equals \$500 for the first month). Subtract the interest costs from the monthly payment. Keep a running tally in an additional column if you want to track interest over time.

Simple interest is money you can earn by initially investing some money (the principal). A percentage (the interest) of the principal is added to the principal, making your initial investment grow! What amount of money is loaned or borrowed?(this is the principal amount) \$.

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Even if you’re not currently making loan payments, interest continues to accrue (grow). Paying a little more toward your loan may reduce your total loan cost. Note: Calculator assumes the interest rate remains the same and that unpaid interest isn’t capitalized-added to the principal amount of your loan-at any time.

Simple interest (SI) is determined by multiplying the daily interest rate by the principal amount and by the number of days that elapse between payments. Consumers who repay their loans on time or early each month will be benefited by this SI rate, as the calculation is done on daily basis.