Interest Revenue Calculator

Calculate Interest Revenue



Formula

The formula to calculate the Interest Revenue (IR) is:

\[ \text{IR} = \text{PA} \times \frac{\text{IR}}{100} \]

Where:

Interest Revenue Definition

Interest revenue is the income earned by an entity from lending out its money or from investments that yield interest. It is calculated by multiplying the principal amount by the interest rate.

Example Calculation

Let's consider an example:

Using the formula to calculate the Interest Revenue:

\[ \text{IR} = 10000 \times \frac{5}{100} = 10000 \times 0.05 = 500 \, \text{\$/year} \]

This demonstrates that with a principal amount of $10,000 and an interest rate of 5% per year, the interest revenue would be $500 per year.