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

## 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)

## How to Calculate Interest Revenue?

The following example problems outline how to calculate Interest Revenue.

Example Problem #1:

1. First, determine the principal amount (\$). In this example, the principal amount (\$) is given as 34,000.
2. Next, determine the interest rate (%/year). For this problem, the interest rate (%/year) is given as 12.
3. 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)