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.

To decide which type of CD is best for you, consider its value. Here’s how to calculate CD interest, helping you better manage your hard-earned money.

How does interest work on a car loan? Most lenders use simple interest for auto loans. Interest is calculated based on the amount you owe — the principal — each month.

Learn what to include in a personal loan agreement. From repayment schedules to penalties, here are what borrowers and lenders may consider using in their contracts.