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 (%) 

To calculate the interest cost, multiply the total price by the interest rate.

How to Calculate Interest Cost?

The following example problems outline how to calculate Interest Cost.

Example Problem #1:

  1. First, determine the total price ($). The total price ($) is given as 500.
  2. Next, determine the interest rate (%). The interest rate (%) is provided as 20.
  3. 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 ($)