Imputed Interest Calculator

Calculate Imputed Interest





Formula

To calculate the Imputed Interest (\(I\)):

\[ I = P \times \left(\frac{r}{100}\right) \times t \]

Where:

What is Imputed Interest?

Imputed interest is defined as the total interest amount that a lender estimates it will collect on a loan or bond, without regard to the amount that the lender would receive.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ I = 1000 \times \left(\frac{5}{100}\right) \times 3 = 150 \text{ dollars} \]

The imputed interest is $150.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ I = 2000 \times \left(\frac{4}{100}\right) \times 5 = 400 \text{ dollars} \]

The imputed interest is $400.