Many individuals seeking a Personal Loan may be surprised to find the impact that different interest calculations can have on their repayments. An interest calculator for Personal Loans is a crucial tool that can assist borrowers in understanding the total cost of their loans. Understanding these calculations is important as they directly affect the overall cost of the loan and the size of your repayments. What is Simple Interest? Simple interest is the most straightforward type of interest. It's calculated only on the initial amount (principal) that you borrowed. The formula for calculating simple interest is straightforward: Interest =