Simple interest calculations in excel

Hi, similar question was answered here

http://answers.microsoft.com/en-us/office/forum/office_2007-excel/excel-formula-accruing-interest-compounded-daily/2d79196f-1f95-4759-8149-52a362f626f7?msgId=7838ae5b-7b0f-4fc2-aaa2-bffcbb1a3687

There is no built in function for simple interest calculation. It will have to be calculated.

The formula for simple interest is = P (Principal) x (R) Rate of Interest x T (Time elapsed)

The base for R and T should be same i.e. if T is in days or months or years, R should also be over days or months or years.

Hence, if your rate is 15% annually, your T should be expressed in years.

In your example, you have R = 0.0004109 which =15/36500, hence your T should be in days.

Hence, if you loan start date is t, your T = today()-t (Here T would be in days)

Assuming, your principal is in A1, R is in B1 and t (not T) is in C1, your Simple Interest would be

= A1 * B1 * (today()-C1)

If you want to use 15% annual, then T = (today()-C1)/365 (You can write B1 as 15% or as 0.15)

Let's assume that you have got a loan of $1000 and after few months, your interest accumulated is 100. Hence total liability is 1100. You decide to pay up 500, you new principal becomes 1100-500 = 600.

Hi,

Give some more detail to better understand. Your question is not really clear.