Use this online calculator if you are borrowing money or you are lending money. This calculator enables you to determine how much interest will be paid or accumulated.
See also: Free Amortization Schedule Calculator
Step 1: Enter the Principal (the amount of money borrowed or to be lent).
Step 2: Enter the Rate (The annual percentage of interest)
Step 3: Enter the length of time in years the money will be borrowed or lent for.
Denise wants to borrow $5000.00 to purchase a used car. She wants to be able find out how much the car will cost her if she borrows the $5000.00 at an interest rate of 8% for 4 years. Thus, she will enter $5000.00 in the column for Principal. She will enter 8 in the column for rate and 4 in the column for years. She will then click calculate. The amount she is actually paying for her $5000.00 is $6802.44. The total amount of interest she will be charged for borrowing the $5000.00 is $1802.44.