Excel Formulas to Calculate the Simple Interest ~ A Complete Guide!!
Tags: excelformula, excelformulas
Published: 2021-06-30 01:54:13

---
title: Excel Formulas to Calculate the Simple Interest ~ A Complete Guide!!
published: true
date: 2021-06-22 08:16:23 UTC
tags: ExcelFormula,Excelformulas
canonical_url: https://geekexcel.com/excel-formulas-to-calculate-the-simple-interest/
---

**Simple Interest (SI)** is a way of calculating the amount of interest that is to be paid on the principal and is calculated by an easy formula, which is by **multiplying the principal amount with the rate of interest and the number of periods** for which the interest has to be paid. This step-by-step procedure to **calculate the simple interest in Excel**. Let’s get into this article!! Get an official version of ** MS Excel**  from the following link: [https://www.microsoft.com/en-in/microsoft-365/excel](https://www.microsoft.com/en-in/microsoft-365/excel)

[![Calculate the simple interest](https://geekexcel.com/wp-content/uploads/2021/06/Calculate-the-simple-interest.png)](https://geekexcel.com/excel-formulas-to-calculate-the-simple-interest/calculate-the-simple-interest/#main)<figcaption id="caption-attachment-47823">Calculate the simple interest</figcaption>

## Generic Formula:

- If you want to find out the simple interest in Excel, you can use the below formula.

**interest=principal\*rate\*term**

## Syntax Explanations:

- **Interest** – The interest is nothing but the simple interest that we want to calculate.
- **Principal** – It specifies the initial amount.
- **Rate** – It represents the interest rate.
- **Term** – It represents the loan years.
- **Multiplication (\*) **– In this symbol will multiply any two values or numbers.
- **Comma symbol (,)** – It is a separator that helps to separate a list of values.
- **Parenthesis ()** – The main purpose of this symbol is to group the elements.

## Practical Example:

Let’s consider the below example image.

- First, we will enter the input values in **Column B** and **Column C**.
- Here we need to find out the simple interest.

![Input Ranges](https://geekexcel.com/wp-content/uploads/2021/06/Input-Ranges-60.png)<figcaption id="caption-attachment-47821">Input Ranges</figcaption>

- Select any cell and apply the above-given formula.

![Enter the formula](https://geekexcel.com/wp-content/uploads/2021/06/Enter-the-formula-74.png)<figcaption id="caption-attachment-47824">Enter the formula</figcaption>

- Finally, press the ** ENTER**  key, you can get the result as shown below.

![Result](https://geekexcel.com/wp-content/uploads/2021/06/Result-61.png)<figcaption id="caption-attachment-47822">Result</figcaption>

## Conclusion:

In this chapter, we have described the formulas to **calculate the simple interest in Excel**. Let me know if you have any **doubts** regarding this article or any other article on this site.

Thank you so much for visiting  **[Geek Excel](https://geekexcel.com/)!! **If you want to learn more helpful formulas, check out [**Excel Formulas**](https://geekexcel.com/excel-formula/) **!! **

### Read Also:

- **[Excel Formulas to Calculate the Principal for Given Period ~ Easily!!](https://geekexcel.com/excel-formulas-to-calculate-the-principal-for-given-period/)**
- **[Formulas for Finding Largest Value Smaller than a Specified Number!!](https://geekexcel.com/formulas-for-finding-largest-value-smaller-than-a-specified-number/)**
- **[How to find Vlookup and Return the Matching Values from Multiple Worksheets?](https://geekexcel.com/how-to-find-vlookup-and-return-the-matching-values-from-multiple-worksheets/)**
- **[Excel Formulas to Calculate the Payment for a Loan ~ Useful Tricks!!](https://geekexcel.com/excel-formulas-to-calculate-the-payment-for-a-loan/)**