What is the formula for calculating interest?

To save money, borrow money and manage money, we all need to calculate interest income or interest expenses. So how to calculate the interest? What is the formula for calculating the interest?

How to calculate the interest? What is the formula?

The calculation formula of deposit interest = principal × annual interest rate × deposit time. If the annual deposit interest rate of the bank is 2.5%, then the deposit in the bank is 10000 yuan, and the annual interest is: 10000×2.5%× 1=250 yuan.

The calculation formula of loan interest is complicated, and there are many calculation methods.

For example, the product interest method, loan interest = cumulative interest-bearing products × daily interest rate;

For example, the interest-bearing method, loan interest = principal × loan interest rate × loan term.

In addition, the conversion relationship among annual interest rate, monthly interest rate and daily interest rate is:

Annual interest rate = monthly interest rate × 12 (month) = daily interest rate ×360 (days);

Monthly interest rate = annual interest rate ÷ 12 (month) = daily interest rate ×30 (days);

Daily interest rate = annual interest rate ÷360 (days) = monthly interest rate ÷30 (days).

The above is "What is the formula for calculating interest?" I hope it helps you.