Enter the total price ($) and the interest rate (%) into the Interest Cost Calculator. The calculator will evaluate and display the Interest Cost.
Interest Cost Formula
The following formula is used to calculate the Interest Cost.
IC = TP * IR/100
- Where IC is the Interest Cost ($)
- TP is the total price ($)
- IR is the interest rate (%)
How to Calculate Interest Cost?
The following example problems outline how to calculate Interest Cost.
Example Problem #1:
- First, determine the total price ($). The total price ($) is given as 500.
- Next, determine the interest rate (%). The interest rate (%) is provided as 20.
- Finally, calculate the Interest Cost using the equation above:
IC = TP * IR/100
The values given above are inserted into the equation below:
IC = 500 * 20/100 = 100.00 ($)
Example Problem #2:
The variables needed for this problem are provided below:
total price ($) = 300
interest rate (%) = 50
Entering these values and solving gives:
IC = TP * IR/100 = 150 ($)
