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Principal x interest x time interest revenue.
How to calculate interest revenue. Interest income is the amount paid to an entity for lending its money or letting another entity use its funds. Banks earn interest through loans mortgages and other similar interest earning products. The total interest income total interest expense and net interest income can be found on a bank s income statement. In order to calculate interest receivable and interest revenue for notes receivable you can multiply the interest rate by the amount of notes receivable and then divide by 12 to capture the monthly rate.
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