Enter the total price ($) and the interest rate (%) into the Interest Cost Calculator. The calculator will evaluate and display the Interest Cost.

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## 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:

- 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 ($)