Enter the principal amount ($) and the interest rate (%/year) into the calculator to determine the Interest Revenue.

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## Interest Revenue Formula

The following formula is used to calculate the Interest Revenue.

IR = PA * IR/100

- Where IR is the Interest Revenue ($/year)
- PA is the principal amount ($)
- IR is the interest rate (%/year)

To calculate the interest revenue, multiply the principal amount by the interest rate.

## How to Calculate Interest Revenue?

The following example problems outline how to calculate Interest Revenue.

**Example Problem #1:**

- First, determine the principal amount ($). In this example, the principal amount ($) is given as 34,000.
- Next, determine the interest rate (%/year). For this problem, the interest rate (%/year) is given as 12.
- Finally, calculate the Interest Revenue using the equation above:

IR = PA * IR/100

The values given above are inserted into the equation below:

IR = 34,000 * 12/100 = 4080 ($/year)

**Example Problem #2: **

The variables needed for this problem are provided below:

principal amount ($) = 12,000

interest rate (%/year) = 20

Entering these values and solving gives:

IR = 12,000* 20/100 = 2,400.00 ($/year)