d3sign / Getty Images The formula for calculating simple ... Familiarizing yourself with the basic concepts of simple interest and compound interest will help you make better financial decisions ...

This figure stays the same throughout the loan term. The simple interest formula The formula for simple interest is as follows: To use a simple interest calculator or calculate simple interest by ...

the calculations are a bit more complicated than the basic interest rate. The formula for calculating compound interest is A = P(1 + r/n)^nt. A is the amount of money you'll wind up with.